Mitchells & Butlers to speed up focus on food in its pubs
Pub operator Mitchells & Butlers (M&B) is to speed up its efforts to become a food-led business and plans a withdrawal from the drinks-led business.
Those are the headline conclusions of a 55-day review of the company, following John Lovering's appointment as chairman.
The company also plans to reduce its debt pile to five times its pre-tax profit (EBITDA) and improve returns on its capital expenditure.
The review said: "We have gradually increased our food business and have successfully converted high quality, drinks-led pubs to greater food content…The strategy of reducing our exposure to drinks-led pubs has been sound but we believe that it could be progressed faster."
It also indicated that it wanted to reduce the overall number of its brands and concentrate on exploiting the full potential of some of its bigger names.
"We will grow out food-led mid-market brands. We want to develop smaller footprint high street variants of Harvester and Toby Carvery. We want to open new outlets in leisure parks and other high traffic locations such as retail parks with good car parking.
The company said it could grow its Harvester brand from 171 outlets now to a potential number of 400. Meanwhile Toby Carvery could go from 133 to 300, Sizzling Puc Co from 200 to 400, and Vintage Inns from 237 to 350.
Orchid Group on a bargain hunt to expand its estate >>
Cold snap drives down sales in pubs and restaurant sales >>
Boardroom blitz at M&B sees off Laffin >>
By Neil Gerrard
E-mail your comments to Neil Gerrard here.
Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs
|
