City Pub Group looks to office workers’ return as pub sector faces soaring energy costs
Premium pub operator the City Pub Group has said it is hopeful the return of office workers will boost its sales in cities across the country.
It said there had been a “significant increase in trade” in the last 10 days, which it put down to an increased consumer confidence.
The easing of the government’s work-from-home instruction would mean demand build further, the group said on Thursday.
In a full-year update, the group said it generated a 38 per cent increase in revenue to £35.4m in 2021, compared to £25.8m in 2020.
Sales dipped to 85 per cent of 2019 during the Christmas trading period after “most” office party bookings were cancelled.
However, strong performances in October and November helped to offset any reduction in December, with year-end results expected to be in line with management expectations.
Clive Watson, chairman of City Pub Group said: “The market remains highly fragmented – providing a significant opportunity to continue to grow our estate. As Omicron abates, we will trade more normally and be more confident to carry out our successful strategy for which we are fully prepared.”
The pub operator said it was not immune to sector-wide challenges, with energy costs set to rise “significantly in the short term, with a material impact on operating margin.”
It also faced staff shortages over the key festive trading period as Covid infections soared and staff had to isolate.
The situation was “now abating”, the group said.