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Back Pub Group toby carvy has raised the prices of all its menus as it faces an extra £130 million in costs over the coming year.
michelle and butler Said that steak prices have increased by 30 percent, which is having a significant impact on toby carvy Restaurant and Miller & Carter Steak restaurant chain.
Mitchell & Butler (M&B) chief executive Phil Urban told the Press Association that the group has increased its menu and drinks prices by an average of 3.2 per cent since the beginning of October to offset the hit and other cost pressures.
Group – which also owns brands like all bar one And harvesters – warned it is bracing for additional costs from rising wage bills and rising beef prices.
This compares with additional costs of around £100 million in the last financial year, which came after April’s National Insurance contributions and minimum wage rises, as well as food price inflation.
Mr Urban said the extra £30 million was mainly due to the rise in beef and steak prices.
But he said the group could not pass the full burden of its cost pressures on to customers, who “won’t eat steak” if prices were too high.
He told PA that the Miller & Carter brand “will be left behind this year” due to steak price increases, but added that M&B could offset this loss through growth in its other brands.
He said: “Some of our competitors have removed steak from the menu altogether.
“Where steak is not the core product, we have reduced the number of steak and beef dishes or re-engineered the menu.
“What I wouldn’t do is change the quality of the meat or the portion size… nor can we pass all that (cost increase) on to the customer.”
Mr Urban said steak prices had soared due to the “wonder storm” of impacts on beef supplies in the UK and around the world, but he expected this “blowout” to subside and hoped costs would bounce back in the next year or so.
M&B said the extra bill of around £130 million for the year to next September also included an “initial assessment of the impact of the Chancellor’s recent autumn measures”. Budget,
The government announced earlier this week that the minimum wage will rise by 4.1 percent from April.
The budget dealt a further blow to many companies like pubs, restaurants and small shops, which are expected to see an increase in property tax payments from the next financial year.
Mr Urban said the changes to property tax were “highly disappointing” for the sector, but he said smaller players would bear most of the costs, with larger groups like M&B facing a “modest increase”.
M&B’s full-year results on Friday showed that pre-tax profits rose by a fifth to £238 million in the year to September 27, despite additional costs rising in the April wage bill.
The company is taking steps to address cost headwinds, including energy-saving measures as well as labor scheduling systems and auto-ordering to keep stock levels under control and reduce waste.
Like-for-like sales grew 4.3 percent during the year, but growth slowed to 3.2 percent due to weak trading in and around the last quarter. London In the region more premium brands.
Sales growth in the first eight weeks of the new financial year was 3.8 percent.
Mr Urban said sales had been hit ahead of the budget and many consumers were already frustrated by weeks of speculation.
He said people are “relieved that it’s come and gone” and “will go out and enjoy and not worry about it in January”.