UK pub group Mitchells & Butlers is to radically transform its estate to reduce its reliance on shrinking alcoholic drinks sales in pubs and bars.
Up to 300 pubs that are ‘wet-led’, or predominantly reliant on drinks sales, will be sold off to make way for rapid expansion of pubs that serve food, Mitchells & Butlers (M&B) said today (24 March).
The UK’s largest pub companies are under financial pressure from a consumer shift to drinking at home.
Around 40 pubs are closing down every week in the UK, according to the British Beer & Pub Association, although so-called food-led and family-oriented pubs continue to prosper.
“The strategy of reducing our exposure to drinks-led pubs has been sound but we believe that it could be progressed faster,” said M&B today, following a 55-day review of its business.
It plans to more than double the number of food pubs such as Toby Carvery and Harvester.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataReversing the erosion of gross margins will be the firm’s key priority and could generate an extra GBP30m in operating profits over the next three years.
“We will seek to recover this from suppliers, pricing and menu engineering over the next three years,” said the group, adding: “On the other hand, drinks sales will continue to be difficult.”
Subscribe to Just Drinks for just £1 for 1 month
Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.
As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the drinks industry’s trajectory and the priorities shaping the profession.
What’s included in your subscription:
- Personalized Access: Secure login to Just Drinks
- Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
- Case Studies & Deep Dives: Real-world applications and in-depth analyses.
- Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.
Ready to stay informed?
Subscribe to unlock exclusive content.
Already a subscriber? Sign in to access your account.
Pleasecomplete this form to request more information, and a representative will be in touch shortly.
