Pub chain boosted by food offers

Pub group Young & Co's said food promotions helped attract consumers to its sites

Pub group Young & Co's said food promotions have helped attract consumers to its sites as it seeks to offset the impact of falling spending by recession-hit Britons.

The firm said it has taken action after a shift in consumer behaviour in response to the economic downturn, with its offers such as "2 Dine with Wine for £20" proving popular.

Delivering the Wandsworth-based firm's annual results, chief executive Stephen Goodyear said food sales now comprise more than a quarter of sales.

He added: "We have seen some consumer trends emerging in response to the credit crisis.

"Spending patterns are showing a more marked split between the beginning and end of the week as going out tends to become more of an occasion than an every day event."

The update came as the group, which operates sites mainly in London and the South East, said it had produced a "good performance in challenging conditions" for the year to March 28.

Adjusted-pre tax profits rose 3.1% to £19.2 million as revenues increased 3.2% to £126.1 million.

However, Young's revealed a 63.7% drop in bottom-line pre-tax profits to £4.2 million after a £10.7 million non-cash write-down on the value of its pub estate.

Revenues at its 122-strong managed house arm rose 4.5% to £111.4 million, with like-for-like sales flat. Operating profit dipped to £25.9 million from £26.8 million as margins were hit by rising wage, food and energy costs.

Sales at its tenanted pubs fell 3.3% to £14.3 million, with operating profit down 2.7% at £5.8 million.