Mitchells & Butlers PLC (LSE:MAB) said like-for-like (LFL) sales at its pubs and restaurants over the last four weeks were down 10.2% on a year earlier, as fears over the Omicron variant of Coronavirus (COVID-19) kept punters at home over Christmas.
In a trading update covering the 15 weeks to 8 January, the group said the first eight weeks of the period saw life-for-like (LFL) sales growth of 2.7%.
However the emergence of Omicron resulted in a downturn in activity across the hospitality sector. As a result, LFL sales in the subsequent seven weeks, which included the important festive period, fell 6.0%.
Over the entire 15-week period, LFL sales were down 1.5% on a year earlier, with the drink side of the business down 9.1%, more than offsetting a 5.2% gain in food.
The trading environment remains uncertain but the group said it continues to benefit from its wide range of brands, offers and locations. Sales have remained stronger in suburban and food-led brands, particularly at the more premium end of the market, M&B revealed.
"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,” claimed Phil Urban, the chief executive officer of M&B.
“Experience shows that as restrictions ease, and confidence returns, our business is able to swiftly recover. To that end, whilst we expect activity to continue to be adversely impacted in the short term, we are encouraged by the latest data on the Omicron variant which we believe will boost consumers' confidence to return to pubs and restaurants allowing us to regain the momentum which was beginning to build, supported by the benefits from our new set of Ignite initiatives," he added.
Pubs/restaurant group Mitchells & Butlers say Omicron meant 10% hit to festive takings but confident of rapid bounce back. Significant hit at business time of year - will be particularly painful, critical even, for smaller operators
— Dharshini David (@DharshiniDavid) January 13, 2022