The Caterer

New-build pubs and food drive Marston's growth

30 November 2011 by
New-build pubs and food drive Marston's growth

Marston's programme of building new pubs with a focus on food has helped deliver a 4.8% rise in revenue to £682.2m for the year to 1 October 2011, with underlying pre-tax profit up 9.4% to £80.4m.

Marston's Inns and Taverns, the managed arm of its estate, saw like-for-like sales up 2.9% with underlying operating margins up 0.7% and average profit per pub up 10%. Meanwhile, the tenanted and leased division, Marston's pub company, recorded an increase in operating profit of 0.6%.

And its brewing division, Marston's Beer Company, saw revenue rise 0.4% and operating profit up 0.6% with group ale volumes up 2%.

The company established 19 new-build managed pubs over the period, slightly ahead of its target, and said it was on track to complete around 25 new-build sites in 2012.

Food like-for-like sales across the managed estate rose 5%, representing 42% of sales. It now serves over 26 million meals sold in managed pubs at an average spend per head of £6.10.

Ralph Findlay, chief executive, said: "We achieved impressive sales and profit growth in each of our businesses despite the challenging consumer environment. Customers are looking for affordable treats, and our focus on value, service and quality in a traditional pub environment has proved successful. Our new-build pub restaurants, the introduction of franchise agreements in around 350 pubs, and increased commercial support to our tenanted and free trade customers are all contributing to the achievement of our key objectives.

"The successful implementation of our strategy will mean that we will create around 1,000 new jobs in 2012. Pubs make a real contribution to employment, and the Government can help by recognising that its policies on taxation, and beer duty in particular, are damaging to pubs, brewers and jobs."

Marston's reports ‘encouraging' performance for 2010/2011 >>

Marston's retail agreement awarded accreditation from British Franchise Association >>

Ex-Marston's staff jailed for pub arson >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

Blogs on ]( Catch up with more news and gossip on all Caterer's blogs
[E-newsletters]([ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!