2012 London Olympics is said to have quashed trade at Greene King’s central London pubs but at the same time it helped increase Greene King’s sales in the suburbs. According to Greene King’s report published today, 2012 London Olympics had a minimal impact on the company’s performance, which had been expected by its officials. However Greene King’s sales increased despite the wet weather in the summer.
Green King’s Results
The company, whose brands include, inter alia, Loch Fyne, Hungry Horse and Old English Inns, informed that like-for-like Greene King’s sales at its pub and restaurant estate increased by 5.1 percent in the 18 weeks to the start of the September. Consequently, food sales jumped 5.2 percent on like-for-like basis, while drinks grew 5 percent and room sales climbed 4.9 percent in the same period.
Greene King, Suffolk-based brewer, highlighted that food sales had helped pubs grow revenues despite a difficult economy. Accordingly, managed pubs tend to do better under those circumstances thanks to centralized buying and menu planning. As it was stated by the company, the City and the West End (in London) were quiet while in the suburbs of London, including Capital Pub Company sites and Realpubs, trading was visibly stronger and therefore Greene King’s sales increased noticeably as well.
According to the company, 2012 London Olympics had “a minimal net impact”. Moreover Greene King is weighted toward the south-east of England which probably resulted in outperforming its competitor Spirit Pub Company in the period, according to some analysts.
Company’s officials are convinced that despite the disappointing weather condition brewer was able to maintain its business and Greene King’s sales increased. According to them, this means that company’s investors do not have to fear. Company’s officials are certain that the collected data regarding sales is encouraging for the rest of 2012. In addition, Greene King’s retail growth strategy is said to continue to deliver earnings and dividend growth for company’s stockholders as the strategy focuses on delivering values, services and quality to customers.
Spirit Pub Company saw like-for-like sales grew 4.1 percent. Consequently, food sales jumped 5.5 percent, compared to a 5.2 percent increase at Greene King. Spirit Pub Company, which owns the Fayre & Square and Flaming Grill chains, reported that like-for-like drink sales jumped 3.3 percent in the quarter to the 18th of August. Spirit Pub Company, however, informed that 2012 London Olympics disrupted trade, but it did not put the blamed for results on poor weather conditions. Mike Tye, CEO at Spirit Pub Company, is convinced that the company’s results showed a strong finish despite weather and 2012 London Olympics.
Sales increase in Spirit Pub Company’s managed estate showed a slowdown in the final three months compared to full growth of 5.8 percent. In addition company’s leased estate continued to struggle, with net income down 5.4 percent for the quarter. Consequently Spirit Pub Company’s properties are now valued at £1.3 billion, which is £0.5 billion lower than in April.