‘Not a cash cow’: Butcombe CEO slams hospitality taxation as half-year sales climb

Butcombe Group’s chief executive Jonathan Lawson has hailed the group’s strong half-year sales growth, which he said were “delivered under trying conditions due to both our own government’s policies and global macroeconomic factors”.

The 118-strong pub operator posted a 5.2% uplift in like-for-like sales across its managed pub division in the 26 weeks to 1 August.

The pub group posted sales and volume growth across all three categories in like-for-like terms during the period – with food sales up 4.7% and drinks and accommodation up 5.7% and 5.2% respectively.

Butcombe said the World Cup had “limited impact” on its sales growth during the period. The pub firm instead credited its strong sales growth to high demand across its beer gardens amid warm weather, with outdoor space representing half of the group’s overall covers during the period and like-for-like sales up 11.5% in the four weeks to 1 August specifically.

Lawson said: “It has been a highly encouraging half year, with all areas of the business delivering results that our teams should be very proud of.

“I’m particularly encouraged given that these results have been delivered under trying conditions due to both our own government’s policies and global macroeconomic factors. I am now on the sixth prime minister since I joined Butcombe in 2019 and my request has not changed for Andy Burnham versus any of his predecessors. We need to see a clear plan for growth in the economy and the government needs to see hospitality as a provider of growth for the country, not a cash cow for taxation with a disproportionate cost base, which deters investment and employment.”

The hospitality firm also recorded a 37% surge in like-for-like revenue across its wedding division year-on-year.

Butcombe’s brewing and drinks division posted a 7% and 11% year-on-year sales uplift in its free-trade and off-trade divisions respectively.

The firm completed three redevelopments across its estate during the period, with a fourth underway at the Methuen Arms in Corsham to “create premium barn space on site, to service accelerating demand for weddings, private events, and special occasions”.

“As a business, we are optimistic for the second half of the year, with strong early bookings for Christmas,” said Lawson.

“We are also now well into planning for next year and a continuation of our multi-year growth trajectory with new sites playing a part in that growth. The new prime minister has the ability to assist this growth for us and the sector if he delivers on his promises and recognises the economic engine hospitality can be.”

Burnham announced a £100m initiative last month to cut business rates for pubs by a further 20%, set to come into effect next April, and was described by the government as “a first step” ahead of the Autumn Budget.