The boss of brewing giant Greene King on Thursday warned of “stress” in the dining sector as he revealed a fall in sales and profit, but rival Marston’s shrugged off the worries hanging over pubs to toast full-year growth.
Greene King’s Rooney Anand said: “There is overcapacity in the eating-out and casual-dining sector. We are starting to see the first signs of stress [in the wider value food market].”
He admitted that while the wider pub market had been hit by more cautious consumers and “unprecedented cost pressures”, the group’s managed division had “traded below the market”.
He cited the poor August and September weather, competitor discounting and its exposure to the value end of the pub food market — it is scrapping Spirit’s Fayre & Square brand — as factors in the 1.4 per cent fall in like-for-like sales.
The FTSE 250 firm said consumers continued to tighten their belts in the 24 weeks to October 15, and that competitor discounting increased.
Like rivals, the company is also grappling with higher wages and business rates. It faces £60 million of cost headwinds over the full year.
