Results, finance, appointments, capital schemes, and more. News in brief from brewers, venue owners, and other hospitality businesses
Like-for-like sales at JD Wetherspoon increased by 4% in the 12 weeks to 19th July, compared to the same period last year. But it warned that profits were likely to be below market expectations.
“Management has been clear that higher labour and operating costs will continue to weigh on earnings, despite resilient sales,” said Robyn Duffy, consumer markets senior analyst at RSM UK.
“That reflects the challenge facing hospitality more broadly. Demand has held up better than many might have expected in the current uncertain environment, but translating that demand into profit has become increasingly difficult.
“For Wetherspoon, the question is no longer whether it can attract customers, but how quickly easing cost pressures and operational efficiencies can convert its market-share gains into stronger margin growth.”
• Mitchells & Butlers has reported sales growth of 2.2% in the 42 weeks to 18th July. Performance in the quarter was affected by the timing of Easter, while several extended periods of extreme heat also had an adverse impact on trading.
Pubs and other drink-led brands have generally performed well, assisted on selected days by the World Cup. In contrast, the exceptional heat adversely affected food-led businesses.
The company has completed 181 conversions and remodels in the year to date. It has acquired 10 new sites — two leasehold sites in Germany and eight freeholds in the UK — in addition to the purchase of four freehold interests in existing sites. Initiatives to reduce energy usage, such as solar panels and sensors, continue to roll out.
“Our business has performed with resilience during a quarter characterised by unusual weather patterns,” said chief executive Phil Urban. “The strength of our diversified portfolio has moderated the impact of external factors, and together with the continued success of our investment programme and Ignite initiatives, we remain confident in delivering our full-year expectations.”
• More than 300 independent pubs saved over £30,000 on electricity during the World Cup thanks to Octopus Energy’s Watt a Save scheme.
Like Happy Hour, but for power, Watt a Save gave participating pubs free electricity between 7pm and midnight when England and Scotland played in the World Cup and venues were at their busiest. After proving so popular, Octopus extended the scheme to also include the final.
“Pubs are the heart of our communities, so it’s great to see the government backing them with this latest business rates cut,” said Zoisa North-Bond, chief executive of Octopus Energy for Business.
“Rising costs have hit hospitality hard, and every saving counts. We’re proud to be doing our bit too, from our Watt a Save free electricity scheme in the World Cup to smart time-of-use tariffs that help businesses lower their energy bills. The more money pubs can keep in their pockets, the better.”
• From a property disputes perspective, the 20% business rates reduction for pubs and club and live music venues, announced last week, is likely to have a limited practical impact. That’s the view of Marika Monaghan, senior associate solicitor at Mayo Wynne Baxter.
“Any reduction in operating costs may help some hospitality businesses avoid the financial pressures that can lead to rent arrears, breaches of lease obligations, and insolvency-related disputes,” she said. “However, with the average saving reported to be around £1,100 per pub, it is unlikely on its own to address the wider financial challenges facing the sector.
“While the government hopes the measure will ease pressure on operators, the relief is targeted at pubs, clubs, and live music venues, rather than the wider hospitality sector, potentially shifting the battleground from rent arrears and financial distress to questions around eligibility and classification. Any increase in disputes on this front is likely to be limited, however, given the relatively small savings involved.”
She said the more fundamental issue was that the announcement does little to address the underlying factors that often give rise to property disputes, such as rising occupancy costs, valuation challenges, revaluations, and the administrative complexity of the business rates system. “For landlords and tenants alike, certainty and clarity within the rating regime would do more to reduce legal friction than a relatively modest reduction in liability.”
• Turnover at Buccaneer Holdings’ pubs rose to a record £11,376,915 in the year to 31st October, 2025, however it reported a loss of £275,089, attributed to administrative expenses. The company has nine managed pubs across the South West.
