All Bar One owner reveals sales slump as Omicron keeps drinkers away
Pub group Mitchells and Butlers (M&B) has revealed a slump in sales in the final eight weeks of 2021 as the firm battled the impact of the Omicron variant.
Bosses of the bar group, which owns All Bar One and Toby Carvery, said the group made a strong start to the first quarter of the year with sales growth of 2.7% in the eight weeks to 20 November, but the spread of the omicron variant then began to dent drink sales as punters steered clear of pubs.
Over the seven weeks since its last update sales dropped 6.0%, driven by a sharp fall in trade over the crucial festive season in which sales fell 10.2%.
Phil Urban, Chief Executive, said: “This first quarter performance represents a robust performance given the challenges the industry faces from the rapid spread of the new variant both in terms of reduced consumer activity and disruption caused by the inevitable isolation of team members.
“Experience shows that as restrictions ease, and confidence returns, our business is able to swiftly recover.”
Bosses also warned of the impact of inflationary headwinds in the months ahead. The firm has predicted that costs will be higher than the normal pre-Covid level of £60m to £65m due particularly to statutory wage rate hikes and historically high energy prices.
The Group currently has cash balances on hand of £235m, with undrawn unsecured facilities of £150m.