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UK pub group Mitchells & Butlers warns of higher energy costs next year

UK pub group Mitchells & Butlers warns of higher energy costs next year
UK pub group Mitchells & Butlers warns of higher energy costs next year Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
Published on Updated
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- British restaurant and pub operator Mitchells & Butlers said on Thursday it expects a further increase in energy and utility costs in the next financial year, after soaring costs squeezed margins this year.

Energy and utility costs have risen to roughly 150 million pounds ($161.6 million) this financial year from 80 million pounds in 2019 and could rise further next year, it said in a statement.

"The trading environment for the hospitality sector remains very challenging, with cost inflation putting increasing pressure on margins, and we are also mindful of the pressures on the UK consumer over the coming months," Chief Executive Officer Phil Urban said.

The company, which has about 1,700 restaurants and pubs in the United Kingdom, said its energy bills were expected to rise despite taking several steps to cut back power usage including installing voltage optimisers.

It added that cost pressures, which were concentrated on energy, wage and food earlier this year, were now felt across the supply chain.

Mitchells & Butlers said like-for-like sales were up 1.5% for the fourth-quarter ended Sept. 24, against 2019 levels.

($1 = 0.9280 pounds)

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