Reports of Beefeater's likely demise have been greatly exaggerated, Whitbread said yesterday, after a group trading statement led to press speculation that the chain could be sold off.
The reports came after Whitbread's chairman, David Thomas, said he was "not satisfied with the level of sales currently being achieved by Beefeater," which showed like for like sales growth of 1.5% in the 24 weeks to August 17.
Brewers Fayre and Brewsters, in contrast, "continue to perform well", Thomas said, with like-for likes-for the period up 3.1%. For comparison, last week Greene King said at Pub Company, its managed business, which includes the Hungry Horse chain, like-for-like turnover increased by 0.3% on an uninvested basis and 2.9% on an invested basis.
City commentators contrasted Beefeater's performance with an earlier statement by Thomas that all parts of the group would have to bring in a 5% increase in annual sales growth, or their position in Whitbread would have to be reviewed. This led several observers to speculate that Whitbread could go for a complete sale of the 250-outlet chain, in the same way it sold the Cafe Rouge and Bella Pasta chains earlier this year. In June Beefeaters reported a 3.1% growth in like-for-like sales.
However, a Whitbread spokesman said: "We're absolutely certain we can get the Beefeater sites back to where they were. We've said we're going to fix it, and we will. We're not prepared to discuss how we're going to do this at the moment, but reports of a possible sale are just pure speculation."
Whitbread has been rebranding a number of Beefeater sites, turning five Beefeaters into Grillbars and 37 into the more modern-looking Out & Out chain.
Thomas said six new Brewsters had opened during the period, bringing the total to 140. He said: "Profit conversion continues to improve markedly in High Street restaurants, despite sales being affected by the slower London market."
Total like-for-like sales growth at the group was 3.8%, with Travel Inn up 6.5%, and David Lloyd Leisure up 6.3%. Only the Marriott hotels business showed a decline, with like-for-like sales down 1.9%, reflecting general problems in the upper reaches of the hotel industry.
The reports came after Whitbread's chairman, David Thomas, said he was "not satisfied with the level of sales currently being achieved by Beefeater," which showed like for like sales growth of 1.5% in the 24 weeks to August 17.
Brewers Fayre and Brewsters, in contrast, "continue to perform well", Thomas said, with like-for likes-for the period up 3.1%. For comparison, last week Greene King said at Pub Company, its managed business, which includes the Hungry Horse chain, like-for-like turnover increased by 0.3% on an uninvested basis and 2.9% on an invested basis.
City commentators contrasted Beefeater's performance with an earlier statement by Thomas that all parts of the group would have to bring in a 5% increase in annual sales growth, or their position in Whitbread would have to be reviewed. This led several observers to speculate that Whitbread could go for a complete sale of the 250-outlet chain, in the same way it sold the Cafe Rouge and Bella Pasta chains earlier this year. In June Beefeaters reported a 3.1% growth in like-for-like sales.
However, a Whitbread spokesman said: "We're absolutely certain we can get the Beefeater sites back to where they were. We've said we're going to fix it, and we will. We're not prepared to discuss how we're going to do this at the moment, but reports of a possible sale are just pure speculation."
Whitbread has been rebranding a number of Beefeater sites, turning five Beefeaters into Grillbars and 37 into the more modern-looking Out & Out chain.
Thomas said six new Brewsters had opened during the period, bringing the total to 140. He said: "Profit conversion continues to improve markedly in High Street restaurants, despite sales being affected by the slower London market."
Total like-for-like sales growth at the group was 3.8%, with Travel Inn up 6.5%, and David Lloyd Leisure up 6.3%. Only the Marriott hotels business showed a decline, with like-for-like sales down 1.9%, reflecting general problems in the upper reaches of the hotel industry.
