Mitchells & Butlers to reposition food-led pub businesses

24th March 2010, 9:55am

After a review of its business, which lasted 55 days, pubco Mitchells & Butlers has announced that it is repositioning a number of its food-led brands.

In a statement, M&B said: "Our portfolio has too many brands and we need an even sharper focus than was suggested in the recent analysts' presentation.

"We will grow our food-led mid-market brands. We want to develop smaller footprint high street variants of Harvester and Toby Carvery. We want to open new outlets in leisure parks and other high traffic locations such as retail parks with good car parking."

Other conclusions from the review, which were presented to all shareholders, plan to:
• rapidly reshape Mitchells & Butlers into a food-led business centred around core concepts which have significant growth potential

• withdraw from the more price sensitive drinks-led businesses

• improve key operating ratios, especially net operating margins

• improve return on capital expenditure

• address the pension funding and reduce net debt to around five times EBITDA

• separate the measurement and reporting of the property and operating performance within the business

• move the basis of pay and culture towards one which encourages greater growth in shareholder value

John Lovering, chairman, said: "I am delighted with the cohesion and effectiveness of the new Board which has quickly concluded on a highly attractive growth plan for the business. We are already implementing the plans with targets being cascaded through the business. I am very encouraged by the enthusiasm and commitment of the management and staff and believe that we have all the right ingredients for success."

Related Articles:

• 24 Jan 2011 - M&B's John Lovering to step down as chairman
• 23 Nov 2010 - Mitchells & Butlers profits soar by 26% as food sales increase
• 20 Aug 2010 - Mitchells & Butlers to sell over 300 pubs for an estimated £373m
• 10 Aug 2010 - Mitchells & Butlers pub group sells Hollywood Bowl for £39m
• 22 Jul 2010 - World Cup has “negative impact” on food sales at M&B
• 30 Jun 2010 - New finance director at Mitchells & Butlers pub group
• 23 Feb 2010 - Pub companies recognised in training awards
• 01 Dec 2009 - Greene King buy seven pubs from Mitchells & Butlers
• 26 Nov 2009 - Pub group Mitchells & Butler announce revenues increase of 2.6%
• 25 Sep 2009 - M&B like-for-like sales up 2.6%
• 02 Sep 2009 - M&B announces two new appointments
• 03 Aug 2009 - M&B appoints chief executive officer
• 26 May 2009 - M&B boss steps down after spiralling losses

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