Young’s pub group revealed today that the government’s recently announced revaluation of rateable values could cost it £1.8 m a year.
The group, which operates almost 300 managed and tenanted sites, said the fee would be added to its annual cost base. It is further evidence of just how much of an impact the rates rise is likely to have on the industry.
Looking ahead to other financial pressures that may be placed on the business, Young’s said that “no-one knows what the longer-term effect of the Brexit vote will be”.
Its comments come as the group reported an 8% rise in revenue to £136m for the 26 weeks to the end of September. Pre-tax profits increased 11% to £22m, leaving chief executive, Patrick Dardis, to state that he was “very pleased” with the results.
On the kitchen side, food sales inched up a healthy 7% in total and 4% on a like-for-like basis, with the benefits of its recently-refreshed menus being felt across the estate.
“In the past few years, brunch has entered into the British psyche and we have embraced this with the launch of our new brunch offering,” Dardis said.
He also revealed that the group has now rolled out its BurgerShack concept to 21 pubs.