Whitbread faces 'challenging' year

By THIS IS MONEY
Updated:

 

PUB restaurant trading at Whitbread, the subject of fevered break-up speculation, remains disappointing. And a trading statement showed falling sales in all but one division of the Costa Coffee to David Lloyd Leisure group.

Premier Travel Inns, the budget hotels arm , was the only business to see an increase in sales at sites open for more than a year.

All other sectors of the business - pub restaurants including the Beefeater chain, High Street outlets like Pizza Hut and the David Lloyd tennis clubs were in decline during the 39 weeks to 1 December.

Chief executive Alan Parker admitted that the pub restaurants, where like-for-like sales were down 2.1%, were particularly disappointing.

'Whilst early customer reaction to our menu and pricing initiatives gives us encouragement,' he said, 'reversing the trends in volume decline will take time.' Sector rivals like Mitchells & Butlers have been reporting strong trading for months.

Parker added that although Costa had fared well, consumer confidence remains low and he expects the rest of the year to be 'challenging'.

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