02/12/2025 09:52:00
Mitchells & Butlers has seen profits jump for another year despite ongoing cost pressures hitting the hospitality industry, writes Pub & Bar. Total sales across the period were £2.7bn, reflecting a 3.9% growth on 2024. Like-for-like sales increased by 4.3%, with strong performances through the brand portfolio. An adjusted operating profit of £330m was 5.8% up on last year (2024: £312m). Over the most recent eight weeks, like-for-like sales have strengthened from the final quarter of 2024, growing by 3.8% despite uncertainty ahead of the chancellor's Autumn Budget. The business says it anticipates 2026 cost headwinds of c.£130m, representing slightly less than 6% of its cost base before mitigation. These are driven by labour cost increases, plus further increases in the statutory thresholds, food cost and the impact of the most recent Budget.
The struggling high end burger chain Byron has been saved from a third collapse by a Gen Z entrepreneur, who has snapped up the troubled business for £2.5m. First reported in The Times, the business has been bought by Niyamo Capital, founded by the Indian born investor Akshat Tibrewala. The sale comes after Bryon's former owner, Tristar Foods, said it planned to appoint administrators in September. The 21 year old is understood to have injected approximately £2.5m into the company and taken a majority stake, while the London based private equity firm Calveton UK will retain a minority holding, advises City AM. Tibrewala is planning a major overhaul of the business to appeal for a younger audience by updating its menu, investing in the company's digital capabilities and expanding into international markets such as Dubai, which has seen an influx of young professionals over the past year.
Star Pubs has completed its largest Just Add Talent (JAT) refurbishment of the year, reopening The Horse and Jockey in Waddington following a £750k investment and taking its managed operator estate to 220 sites. The Grade II listed pub had been closed since 2018 and has now been reopened with a strong sports and entertainment focus. The scheme is the fourth major JAT project delivered by Star in the final quarter of the year, reports Morning Advertiser.
Premier Inn owner Whitbread said it expects its business rates bill to rise by between £40m and £50m in its next financial year due to changes announced in the Budget, reports The Caterer. The group, which owns around 850 UK hotels, said it would look to cut costs by £60m to deal with the impact. A "variety of options" to drive profits, margins and returns will be explored over the next few months. Whitbread said there would be a "significant increase" in the rateable values for many of its hotels, driving up its business rates bill. It estimated the Budget would mean it would see gross UK cost inflation of between 7% and 8% on its £1.7b cost base.
The newly-formed Propaganda Independent Venues, launched by Dan Ickowitz-Seidler and Richard Buck, has acquired TEG's UK venue estate, reports IQ Magazine. The deal includes Tramshed and The Globe in Cardiff, XOYO and Camden Assembly (formerly the Barfly) in London, and XOYO Birmingham. It sees them regain ownership of venues six years on from TEG's acquisition of The MJR Group. Fleurets acted on the sale.
Leon co-founder John Vincent has said the business may have to close some unprofitable sites and cut its staff headcount as part of a turnaround plan. In an interview with the Sunday Times, he said previous owners Asda had cut costs to save money once they realised that sales were "going backwards". Vincent regained ownership of the 71-strong chain in October, four years after selling it to the billionaire Issa brothers behind petrol forecourt company EG group for £100m. Vincent is planning a shake-up of Leon's menu, which has been criticised for drifting from its original ethos of 'healthy fast food'.
Hospitality businesses face steep business-rate rises next year despite the chancellor's promised relief, advises The Caterer. Reeves announced the "lowest tax rates since 1991". However, even with a lower tax multiplier, many will see higher bills when rateable values are reassessed and the 40% sector discount ends.
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