Two of the UK's leading pub operators have toasted a bumper festive season, reporting significant sales growth despite the ongoing cost-of-living squeeze affecting consumers.
Festive Sales Surge Defies Economic Headwinds
Mitchells & Butlers (M&B), the group behind brands like All Bar One, Toby Carvery, and Harvester, described its performance as "exceptionally strong." The company revealed that like-for-like sales surged by 7.7% for the period from 14th December to 3rd January compared to the previous year.
This growth was powered by an even more impressive 10.5% increase over the crucial festive dates encompassing Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, and New Year's Day. Notably, Christmas Day set a new all-time record for the highest single day of sales in the company's history.
Over a broader 15-week period ending on 10th January, M&B's total sales grew by 4.5%, with food sales leading the charge at a 5.1% year-on-year increase.
Confidence Amidst Rising Costs
Despite the celebratory trading update, the sector faces significant challenges. M&B acknowledged it expects to grapple with around £130 million in extra costs this financial year, driven primarily by higher wages and food price inflation.
Chief Executive Phil Urban struck a confident tone, stating the group is focused on managing these headwinds through its 'Ignite' efficiency programme and ongoing capital investment. "We remain well positioned to further grow market share," Urban said, highlighting the strength of the company's diverse brand portfolio.
Fuller's, the London-based pub and hotel group, echoed the positive sentiment, hailing "outstanding" trade. It reported a 8.2% jump in like-for-like sales over the five weeks covering Christmas and New Year. This performance contributed to a 5.3% sales increase for the 41 weeks to 10th January.
Simon Emeny, Executive Chairman of Fuller's, expressed delight at maintaining strong growth in both sales and profitability, further enhanced by the excellent Christmas period.
Sector Awaits Government Support
The robust trading updates come during a turbulent time for the hospitality industry. Both companies saw their share prices rise in early trading on Thursday, 15th January 2026, following the announcements.
The news arrives as the pub sector anticipates further financial support measures from the Labour Government. This follows criticism over impending increases in business rates for many pubs. The industry is keenly watching Westminster for policy developments that could alleviate some of the substantial cost pressures, which for Fuller's includes a potential £10 million rise in energy bills without state intervention.
Both M&B and Fuller's emphasised their ongoing investment plans, suggesting a degree of optimism for the year ahead despite the well-documented economic challenges facing both businesses and their customers.
