‘Expected reduction’ in F&B sales at Whitbread

Whitbread revealed its F&B sales performed “in line with expectations” after announcing changes to its branded restaurant segment last year.

Under the accommodation business’ Accelerating Growth Plan announced in April last year, the group said it would optimise its F&B offering through converting 112 and exiting 126 branded restaurants, as well as securing 3,500 new room extensions.

In its third quarter trading results, total UK accommodation sales were in line with last year, with total group sales down 2% to £763m due to the “expected reduction” in UK F&B sales.

Occupancy in the year to date at Premier Inn UK was 83.3%, with average room rate over the same period at £83.22, while revenue per available room (RevPAR) was £69.33.

F&B sales have been declining throughout the year, starting from £191m in Q1, which fell to £175.1m in Q2 and most recently hit £162.4m in Q3.

Whitbread also expected gross UK cost inflation to be between 5% and 6% on its £1.7b cost base as a result of the repercussions of the Budget.

Dominic Paul, chief executive of Whitbread, said: “Our Five-Year Plan is set to deliver incremental profit of at least £300m by FY30 and release more than £2b for shareholders through a combination of dividends and share buy-backs. We are making good progress against our strategic priorities including our Accelerating Growth Plan and cost efficiency programme, and we remain confident in our ability to deliver a step change in profits, margins and returns.

“The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic. Whilst forward visibility remains limited, the favourable supply backdrop, together with our brand strength and commercial initiatives, means we are confident that we can continue to outperform the market.”

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