Today’s news in brief – 29/09/23

Hostmore has postponed any new restaurant openings until 2025, saving about £15m in cash expenditures due to challenging trading conditions. The company reported improved cost reductions of £8.2m for the 26 weeks ending July 2, benefiting FY23 by £5.8m. H1 2023 delivered negative EBITDA of £3.8m, compared with positive £7.1m in 2022, due to reduced VAT rates and rent concessions. Chairman Stephen Welker and CEO Julie McEwan expressed optimism about the company’s financial outlook and turnaround programme.

Mitchells and Butlers reported a 9.1% increase in like-for-like sales in Q4. This was due to growth in both food and drink volumes, as year-to-date like-for-like sales were up 10.5% compared with pre-pandemic levels. The company invested in its estate, completing 142 conversions and remodels, including two for the newly-acquired Ego brand, and opened four new sites. CEO Phil Urban emphasised the pub group’s focus on growth, efficiency, and capital investment initiatives.

UKH’s Workforce Strategy, which was launched in May 2022, has led to a 33% reduction in hospitality vacancies to 57,000 at its peak. The sector now boasts “record” levels of employment in accommodation and food service, with 2.7 million people employed, according to the ONS. Key achievements over the past 18 months include an enhanced partnership with the DWP, inclusion of hospitality in local authority plans and government-led childcare system reform. UKH CEO, Kate Nicholls, highlighted the progress while acknowledging there is more work to be done in areas like recruitment, skills, training, and workplace culture.