Marston's trading since reopening ‘better than expected'
Marston's has said trading since reopening on 17 May has proved "better than expected" with like-for-like sales at 92% of 2019 levels across its managed and franchised pubs.
The stronger performance was driven by a combination of additional food covers, outdoor investment, warmer weather and the Euro 2020 tournament. It said the Brains estate, which Marston's acquired in February, had performed well since reopening, while accommodation sales have been excellent, benefitting from restrictions on travel and the staycation boom.
In a trading update for the 42 weeks to 24 July 2021, the group said its entire estate of around 1,500 pubs had been open since 17 May and investment into external trading areas last year had positively impacted trade and should continue to do so outside of the summer months. Like-for-like sales in carvery in the period since 12 April were 73% of their 2019 level.
In the first week of trading since restrictions were completely lifted on 19 July, Marston's saw a "modest" uplift in sales. The group also said it had generated positive earnings and cash flow in both May and June despite operating at around 70% capacity for those months.
Chief executive Ralph Findlay said: "The last 16 months have been extremely difficult, but we are delighted to be fully open again albeit taking our responsibilities seriously while striving to offer our guests a genuine but safe pub experience. Pubs are social spaces, and for pubs to prosper we need to be able to offer conviviality, sociability and a place to celebrate, which we can now do as of last week.
"That said, there are challenges ahead as the sector starts out on the road to recovery, with the immediate short-term continuing to be uncertain and operationally disrupted. The tone of government messaging will be an important influence on consumer confidence. At present, the message is one of caution.
"We believe that a government review of the business rates system is long overdue and that VAT reduction should be permanent since the hospitality industry remains one of the most heavily taxed sectors. This would assist an industry that has been hit hard and aid hospitality's employment and development of young workers which will be a key part of the UK's economic recovery.
"Despite these challenges the role that the pub plays in the social fabric and culture of Britain, as demonstrated by the pent-up demand and the rapid return of customers, is needed as never before, and therefore we are confident in our future."
