Toby Carvery owner hikes menu prices as it faces £130 million bill
Major restaurant chain forced to increase menu prices over rising costs
- Mitchells & Butlers (M&B), the pub group behind Toby Carvery and All Bar One, has increased menu prices by an average of 3.2 per cent to offset an anticipated £130 million in additional costs for the year ahead.
- The significant cost increase is largely driven by a 30 per cent surge in steak prices, severely impacting brands like Miller & Carter, alongside a soaring wage bill and rising property taxes.
- M&B chief executive Phil Urban stated the group cannot pass on the full cost burden to customers and has adjusted menus, reducing steak dishes in some eateries, but will not compromise on quality or portion size.
- Despite these cost pressures, M&B reported a 20 per cent rise in pre-tax profits to £238 million for the year ending 27 September, aided by savings initiatives and energy-saving measures.
- Like-for-like sales grew by 4.3 per cent over the year, though growth slowed to 3.2 per cent in the final quarter and 3.8 per cent in the first eight weeks of the new financial year, partly due to consumer uncertainty before the recent Autumn Budget.