Pub operator sounds note of pessimism

Sep 9 2009 by Iain Laing, The Journal

ROBUST trading figures from pubs and brewing group Greene King have failed to brighten the company’s view of prospects for the industry.

Like-for-like sales across its managed outlets, which include Old English Inns and the Hungry Horse chain, were up 4.6% in the 17 weeks to August 30, driven by the strength of its food operations where the figure was up 8.1%.

But sales growth is expected to moderate in the second half due to tougher year-on-year comparatives and Greene King remained cautious on the outlook for the industry and economy as a whole.

It said: “The consumer recovery is fragile and there are numerous risks to current levels of consumer spending, particularly for the second half of our financial year, including rising unemployment and taxes.”

Greene King, which has more than 2,000 pubs, said trends in its tenanted estate were maintained through the summer. Average earnings per pub fell 7.2%, with an improvement in beer sales and some disposals offsetting the cost of higher licensee support.