Whitbread – the pub and hotel company – today revealed its like-for-like sales were up by 7.1% and total sales were up by 14.6%.
Costa Coffee was the group's best performer for the 13 weeks prior to May 29 – with a total sales up by 28.4% and its LFLs up by 6%.
This was closely followed by its Premier Inn chain of budget hotels which achieved an 18.3% gain in total sales and LFLs increased by 10.7%.
However, Whitbread's pubs only made a 3.6% increase in LFLs and total pub sales were up by 5% on the same 13 week period last year, the company revealed in an AGM trading statement.
Alan Parker, Whitbread's chief executive said: "The group has started the new financial year with strong growth in all of its businesses. Total sales have grown 14.6% and like for like sales have grown by 7.1%.
"Premier Inn continues to outperform the hotel market with total sales increasing year on year by 18.3% and like for like sales up 10.7%. Revenue per available room has increased by 6.2% with 8.3% more rooms sold due to hotel expansion. The rebranding exercise is close to completion and has been well received. Sales through our Business Account card have grown by 40% year on year as corporate travellers recognise Premier Inn's value for money price and quality.
"Pub Restaurants has performed well with sales growth accelerating. Total sales are up by 5.0%, like for like sales rising by 3.6%* and like for like covers up 6.9%. Food cost inflation has put pressure on gross margins and we have responded by reviewing menu prices and through operating efficiencies. To drive covers growth we have introduced a number of less expensive meal options. Our new restaurant brand Table Table, with 109 units was launched in May."
And he added the group would be concentrating on rolling out the Costa brand to more places in Eastern Europe and Asia.
"Costa has seen a strong sales performance with total sales up by 28.4% year on year benefiting from its rapid expansion programme, which has seen the total number of units increase year on year by 289 to 1,051, and like for like sales growth of 6.0%. We have recently signed new franchise agreements for Hungary, Czech Republic, Slovakia and Singapore.
"The attractiveness of our brands to guests has been demonstrated by our good performance to date. We remain cautious, however, should the consumer environment become more challenging. The resilience of our businesses combined with cost actions we have taken, our investment pipeline and our strong balance sheet put us in a good position to continue the disciplined development of the Group.'"
At the weekend Parker was awarded the CBE in the Queen’s Birthday Honours List. Parker, 61, joined the hospitality industry after his parents ran a greasy spoon café.
