Pub group Marston’s has returned to a profit in recent months after cutting costs and attracting customers during occasions like Easter and Mother’s Day.
The company, which runs 1,333 pubs across the UK, said the first half of its financial year had been a period of “significant momentum”.
It reported a pre-tax profit of £19 million for the six months to March 29, swinging from a loss of £200,000 the previous year.
Sales were flat on the previous year at £427 million for the period, despite the group selling a swathe of pubs last year and its remaining brewing business to Carlsberg.
Marston’s revealed that, compared like for like with last year, sales have surged by 10.5% in the five weeks since the end of March, amid a spell of warm weather across the country.
Chief executive Justin Platt told the PA news agency that the pub group’s beer gardens were “very popular”, with a million pints of draught sold across the group over the recent Bank Holiday weekend.
“We’ve had a really big focus on giving people reasons to visit our pubs … we had a record Mother’s Day and Christmas Day,” he said.
“We’re not expensive, so you’re able to get pints in our pubs for less than £4.50. The average cost of a pint in our pubs is less than a fiver.
“It is important we offer value.”
The company has an estate of pubs scattered across the country, including franchises and leased pubs, and hires about 10,000 staff.
It revealed it had been making changes to reduce business costs in recent months, including rolling out a staff planning tool based on live levels of demand in pubs and simplifying its food and drink menu.
Mr Platt said the tool was about “making sure we get the right people at the right time”, adding: “At a particularly busy time, you can forecast that and have the right number of people on and, equally, at a quieter time, you don’t need as many people on.
“AI (artificial intelligence) does help. It’s very important to get your forecast right … and AI can play a role in that,” he told PA.
Installing smart meters across pubs and fixing electricity contracts until the end of the financial year was also reducing energy costs.
The cost savings will offset the impact of the national minimum wage rising and national insurance contributions increasing, Marston’s said.
Marston’s was among pub and hospitality groups to sign a letter to Chancellor Rachel Reeves last year warning that business tax hikes could force them to slash jobs or raise prices for customers.
Meanwhile, occasions including Christmas, Mother’s Day and Easter, alongside events organised by the group, were bringing in more customers.
Marston’s has cashed in on initiatives such as a limited edition menu to mark the release of the Paddington in Peru film and a darts tournament while it is preparing to hold a pub quiz series with TV host Paddy McGuinness.
It is also in the midst of launching a new local sports pub concept, named Grandstand, which will bring large TV screens and new sound systems to a selection of its pubs, as well as a sports-themed menu.
Mr Platt said the first half had been a “period of significant momentum” with investment in new technology helping drive profit growth.
“With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead,” he said.
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