World cup and weather boost drink sales

The football world cup and prolonged sunny weather cheered drink sales at pub giant Mitchells & Butlers but took a bite out of its food revenues.

It expects margins to remain squeezed having previously warned of “cost headwinds” affecting its business.

The Birmingham-based pub giant operates around 1,800 pubs under more than a dozen brands, including Harvester, Toby Carvery, All Bar One and Miller & Carter.

Revenues from drinks rose 3.9% in the 11 weeks to July 28, but food sales were down 1.8%.

Phil Urban, M&B’s chief executive, said: “Trading was polarised across the Company, with the wet-led part of the business delivering very strong growth, but some of the more food-led formats, particularly the carvery businesses, were negatively impacted.

“However, we have been encouraged to see sales recover now that the World Cup has finished and as we continue on our longer-term journey.”