Mitchells & Butlers has provided its Third Quarter Trading Update showing total sales growth in the third quarter was 5.0%, bringing growth in the first 43 weeks to 8.2%, and commenting:
“Like-for-like sales continued to grow over the third quarter, with strong food sales offsetting a softer drinks performance. As previously reported, operating margins are below last year reflecting the lower margin of Orchid ahead of full integration and sales growth being driven by food volumes.
National Living Wage
“As a major employer of more than 42,000 people, the recently announced introduction of the national living wage will have an impact on our cost base from its introduction in April 2016. We are assessing a wide range of options to mitigate the impact whilst continuing to focus on retaining and attracting the best people to work in our pubs, bars and restaurants.
“So far this financial year we have opened 11 new sites and converted 43 sites, including 32 conversions of Orchid sites to core M&B brands including Toby Carvery, Miller & Carter, Harvester and Ember Inns.”
Alistair Darby, Chief Executive, added:
“This year we have continued to successfully grow our food volumes and our like-for-like sales ahead of a subdued market, in addition to integrating and converting the Orchid business as planned. These initial conversions are trading well and in line with our expectations.”
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