The big ol’ pub company that owns the famous Horseshoe Bar in Glasgow and a bunch of other spots around the UK is warning everyone about more costs going up soon. They said they’re gonna make a profit this year that’s gonna be at the top end of what all those smart analyst folks are expecting.
Costs are expected to go up by about £130 million next year, which is a whole lot of money. They blame it on higher labor costs and more expensive food, especially meat. They’re not changing their mind about costs going up by around £100 million this year, mostly because of the national living wage going up and employer national insurance contributions kicking in during the second half of the year.
The big boss, Phil Urban, said they’re working hard to deal with all these rising costs. He mentioned that steak is a big reason for the costs going up, but they’re not gonna skimp on quality. They’re planning to save some money by changing up the menus at their other places and being smarter about scheduling their staff.
The company is also thinking about raising prices every year, which seems like a pretty normal thing to do. They usually raise prices by about 3% to 5% every year, depending on what their competition is doing. With all these extra costs coming in, it looks like everyone in the industry is gonna have to think about raising their prices too.
The update from the big pub company came right after the UK said that inflation went up more than expected in April. The hospitality industry is feeling the pinch with all these extra costs adding up. The head of UKHospitality said that all these new costs are making it really hard for businesses to stay afloat, so they have to raise their prices too, which just makes everything more expensive.
Even with all these costs going up, Mitchells & Butlers still thinks they’re doing pretty well. They said they have a strong business with less debt and a good pension fund. They’re expecting to make profits at the top end of what everyone thinks this year, so that’s good news for them.
In their latest results, the company said they had a great first half of the year. Their profits went up by 24% to £134 million, and their sales grew by 4.3%. They made a bit more money from drinks than food, which is interesting. They’re really focused on making their places more appealing to customers so they can keep making money.
The boss, Mr. Urban, said they’re gonna keep working hard in the second half of the year. They know costs are going up, but they’re gonna keep trying to save money and make more sales. They’re confident that they’re gonna keep doing well, even with all these challenges coming their way.
