City Pub Group toasts return to profitability after reopening
City Pub Group this morning toasted a return to profitability since reopening after the coronavirus lockdown.
The pub chain, which has so far reopened 32 of its 48 pubs, said total sales for the three weeks since reopening on 4 July were £1.8m.
On a like-for-like basis sales have reached 63 per cent of pre-pandemic levels while capacity is reduced due to social distancing measures. A surge in “staycations” boosted sales at pubs in UK tourism destinations, it said.
City Pub Group said cost base reductions, including payroll costs, consumables, satellite TV, entertainment and recruitment, had allowed it to trade profitability during the three week period.
It is preparing to make further cuts to its head office and pub costs, with a review expected to be completed by September. The group also raised £22m of equity to bolster its balance sheet when pubs were ordered to close at the end of March.
City Pub Group will reopen the rest of its estate over the next two months, or sooner if one-metre social distancing rules are relaxed further.
“The profitable performance since reopening is a reflection of the quality of our asset base and the professionalism demonstrated by all of our staff, a large number of whom have been with the group for a number of years,” City Pub Group said in a statement this morning.
“Again, the board wishes to put on record its gratitude to all its stakeholders. The board remains confident it will be able to rebuild its sales to previous levels on a much lower cost base.”