Food sales can save pubco industry, says Watts
West Midlands pub companies will have to take a share of the market from restaurants if they are to prevail, a local industry expert has told Insider.
Greg Watts, audit partner at KPMG in the Midlands, said that there was "always winners and losers" in the competitive pubco market.
"It's all about winning market share - and those who are doing so are taking it from the restaurant industry. It's now a food rather than drink culture which is bringing in custom," he said.
"Customers are still going out for a meal and many are on the lookout for a cheaper offering, which pubs can provide. The wet side of the pub trade is still waning, these pubs are still struggling. But those serving up good food at good prices are the ones which seems to be blooming.
Pub giant Mitchells & Butlers, which operates under brands including All Bar One, Harvester and Toby Carvery, unveiled its annual results through the stock exchange yesterday.
Despite a 9.8 per cent drop in revenue, the company secured a £132m pre-tax profit, taking it back into the black.
Food sales at M&B soared 7.8 per cent over the year to 24 September.
"Pubs can do well at the expense of restaurants," Watts concluded. "The whole drinking culture will have to go through massive changes when the government decides how much supermarkets can charge for alcohol – time will tell how big an impact this will have on the pub trade."
