Pub chain in spending warning for year ahead

The Restaurant Group, which owns the Brunning and Price pub group as well as the Frankie & Benny's and Chiquito restaurant chains, moved to dampen expectations for the new year, despite a strong performance for 2015.

It said in a year-end statement that the trading environment got tougher towards the end of 2015, and that its outlook for 2016 was more cautious than it had been – although it still expects to make a profit and grow its portfolio.

Brunning and Price pubs in the area include:

• The Armoury in Shrewsbury

• The Fox at Chetwynd Aston, – a repeat winner of the Good Pub Guide

• The Woodbridge at Coalport - County Dining Pub of the Year

• The Combermere Arms at Burleydam near Whitchurch

• Also The Corn Mill at Llangollen

The group also has a Chiquito Mexican restaurant in Shrewsbury, and Frankie & Benny's branches at Battlefield in Shrewsbury and Telford Forge Retail Park.

"It has become apparent from much of the recent data from the retail sector and the wider economy that the trading environment for many consumer facing businesses has been tougher in recent months than it was earlier in 2015," the group said.

"This has caused like-for-like sales growth to trend lower and accordingly we are more cautious than previously on the outlook for 2016.

"A possible referendum on the UK's continued membership of the European Union, National Living Wage implementation and global uncertainty are all additional issues that we are conscious of going into the new year."

The Restaurant Group's move to lower expectations for the coming year came despite the group delivering a strong performance during 2015.

For the 52 weeks to December 27, total turnover was up 7.9 per cent on the prior year, with like-for-like sales increasing by 1.5 per cent, while profits are expected to set to lie in the middle of their expected range when the company reports its final results on March 9.

The slower trading environment is not expected to impact on the company's expansion programme.

The group opened around 44 restaurants in 2015, and plans to open a similar number in the coming year.

The statement added: "TRG has an excellent portfolio of businesses with strong market positions.

"The company's move towards a more balanced portfolio is paying dividends and we have a proven track record established over many years of delivering strong financial returns and excellent cash flows, even through more difficult trading periods.

"Therefore, notwithstanding some of the uncertainties described above, we are confident that TRG is well positioned to deliver further profitable progress in 2016 and subsequent years."