Large pub firm sees another fall in sales

The Restaurant Group, which owns the Brunning & Price pub chain as well as brands such as Frankie & Benny's, has seen like-for-like sales fall by 1.8 per cent in the 20 weeks to May 21.

Total sales, which include the impact of new restaurants opening, decreased by 1.5 per cent over the period.

But the group said it has seen a strong performance in its pubs business, which includes the likes of The Armoury in Shrewsbury, The Fox at Chetwynd Aston, and the Woodbridge at Coalport.

The company, which is also behind Chiquito and Garfunkel's, has been closing under-performing restaurants and rejigging menus as part of a turnaround attempt under chief executive Andy McCue.

The Restaurant Group said its concessions business was another strong performer, while the implementation of its strategy is "progressing well".

Investors appeared to share that view as the chain's share price opened almost 35p higher on Friday morning.

In its trading update, the firm said: "2017 is a transitional year. We continue to address the competitiveness of our leisure businesses and are focused on achieving a sustainable volume-led turnaround.

"Where opportunities to accelerate our progress present themselves, we will invest appropriately."

The company has admitted it has lost value-conscious customers at Frankie & Benny's after significant price hikes and the firm has previously pledged to "look at the pricing architecture of the menu" and "reinvigorate the value offer" in a bid to attract more families to its outlets.

The Restaurant Group posted a pre-tax loss of £40 million last year after being stung with a £117 million exceptional charge linked to restructuring efforts.

On Friday the company said it expects profits for this year to meet market expectations.

The Restaurant Group operates more than 400 restaurants and pubs and it is also behind Chiquito, Coast To Coast and Brunning & Price.