Mitchells & Butlers acquires Pesto Restaurants brand

Mitchells & Butlers has acquired the 10-strong Italian restaurant group Pesto Restaurants.

 

The deal, which completed on 14 May, will see the northern-based brand join Mitchell’s & Butlers’ national portfolio, which includes the All Bar One and Harvester chains.

 

Mitchells & Butlers said the sale price would be settled in two payments and partly depended on the future performance of the business but is expected to be no more than £15m.

 

Pesto Restaurants was founded by owners Neil and Sara Gatt in 2006 and runs 10 restaurants serving Italian-style tapas in the north of England.

 

Mitchells & Butlers said the acquisition would help it “further diversify and premiumise” its brand portfolio.

 

It comes after the pub and restaurant group acquired a 100% stake in Mediterranean-themed restaurant brand Ego Restaurants last year.

 

The company said it had since converted five of its existing sites to the Ego brand, which had resulted in a doubling of average sales.

 

Mitchells & Butlers reported strong trading in its half-year results, with like-for-like sales rising 7%.

 

Total revenue hit £1.39m, up from £1.28m in 2023, while pre-tax profits jumped from £40m to £108m.

 

Chief executive Phil Urban said: “Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in very strong profit recovery for the period.”

 

Mitchells & Butlers other brands include Browns, O’Neills and Toby Carvery.

 

Image: Pesto Restaurants / Facebook