HomeWorldThe owner of Glasgow's famous horseshoe bar issued a cost warning IV...
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The owner of Glasgow’s famous horseshoe bar issued a cost warning IV News

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Shares of Pub, the owner of Glasgow’s famed Horseshoe Bar, fell sharply this morning after it underscored the deep challenges facing the hospitality sector.

Michels & Butler, which owns around 1,700 pubs and restaurants across the UK, warned this morning that cost inflation is “increasing pressure on margins”, adding that it will “increases pressures on the UK consumer in the coming months”. Was aware too.”

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The company said it would increase its energy and utility costs by around £150m in 2022, up from £80m in 2019, and expects those costs to rise further in the following years – in line with the recently announced energy price cap for the business. Regardless, that would be in place for six months, the Herald reports.

M&B Chief Executive Phil Urban said: “The business environment for the hospitality sector continues to be very challenging, with cost inflation increasing pressure on margins, and we are also aware of pressures on the UK consumer in the coming months. Huh.

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“We remain focused on delivering our Ignite program initiatives, driving sales and cost efficiencies. This, coupled with our diverse portfolio of well-known brands and strong estate locations, will put us in a strong competitive position to meet the challenges ahead. ,

M&B reported a 1.3 per cent decline in overall sales for the 52 weeks ended September 24, primarily driven by Covid-related closures in the first half of the year and site disposal since 2019.

The company said similar sales improved in the fourth quarter, “despite the ongoing impact of extreme heat as well as further rail strikes, both of which disrupted business.”

It said sales during the August bank holiday were “encouraging”, with a similar increase of more than 6% over the three-day weekend, “before returning to levels in line with the quarter as a whole.” M&B said that food sales continue to grow.

Shares of M&B were trading at 125p, down 10p or more than 7% at around 11am.

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