Hospitality companies are facing the “big challenge” of rising energy and labor costs as they seek to rebuild after warnings from pandemic, bar and pub operators Mitchells & Butlers.
Companies behind brands such as Harvester and All Bar One have reported annual losses for the second year in a row, although they said sales had recovered to pre-pandemic levels in recent weeks.
Demand seen since the reopening of the venue should help restore profitability, but Brexit’s high costs will “inevitably” hurt its financial performance, he said.
Mitchells said he faces potential short-term supply chain problems and is expected to have lower profit margins than before the pandemic due to “significant” inflation in food, utilities and labor costs. rice field. Hard to find.
A group that employs more than 40,000 people on 1,700 sites was forced Announced reduction of 1,300 employees Last year, the decline in trade put pressure on public finances.
The company’s performance, including Toby Carvery and the Miller & Carter steakhouse chain, showed a pre-tax loss of £ 42 million over the year to September 25, down from a loss of £ 123 million in the previous year.
Sales were down 9.6% from two years ago at pre-pandemic levels. The venue was closed or for most of the period limited, and the traditional drinking-focused pub in the heart of the big city was the worst hit.
Transactions recovered towards the end of the period and increased 2.7% in 2019 in the next eight weeks. This is due to increased per capita spending, even though the amount of food and drink sold remained low.
“But cost headwinds pose a major challenge for the hospitality sector as a whole, especially for utilities and employment costs,” the company said.
While working hard to cover these ups, he said, “this year’s performance will inevitably have a residual impact.”
Phil Urban, Chief Executive Officer, said:
“The trading environment remains difficult and cost headwinds continue to put pressure on the sector.”
According to the company, in the short term, “cost pressure is expected to be higher than average, mainly due to the recent rise in energy costs.”
“Brexit remains an important event for the market and poses risks to the sector, primarily in terms of product supply and costs, and labor shortages,” he added.
Stock prices have risen 6%.
Richard Hunter, Market Head of Interactive Investor, said:
“The market consensus on stocks as a strong buy shows that some people see the current glass as half full.”
All BarOne owners warn about cost issues as the hospitality sector fights to recover after the blockade.Business news
Source link All BarOne owners warn about cost issues as the hospitality sector fights to recover after the blockade.Business news