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Punters flocked to Facebook to grumble about the closure including one who said it was “sad but inevitable”.
However, it's worth bearing in mind, retailers and hospitality chains often close branches due to customer demand or trends.
It is not necessarily an indication a business is struggling financially or will go bust.
Mitchells and Butlers's latest results reveal the operator traded strongly over the festive period with sales up on the year before.
This followed a strong trading performance for the 52 weeks to September 28, 2024, with like-for-like sales up 5.3%.
Phil Urban, chief executive, said in January: “We are delighted to have delivered another very strong festive trading period, with some excellent performances across our brand portfolio.
“Growth was particularly strong on festive key dates supported by volume growth, and with record sales on Christmas Day.
“Cold and stormy weather over recent weeks has subsequently had a material adverse impact on trading but we remain confident in the strength of underlying sales growth.”
HOSPITALITY SECTOR STRUGGLES
The hospitality sector has struggled broadly in recent years, with hundreds of locations closing since 2022.
The licensed sector shrunk by 4.5% and 2.9% in 2022 and 2023, respectively, according to AlixPartners.
In 2024 the consultancy firm reported there were 4,078 closures and 4,085 openings across the year, a net gain of seven.
However, it also found closures accelerated in the final quarter of last year due to mounting cost pressures and changing customer habits.
The last quarter contraction meant 748 venues were lost in the three-month period.
The financial advisory and global consulting firm said if this trend were to continue, it would represent a net loss of nearly 3,000 venues over 12 months.
What brands does Mitchells and Butlers run?
Alex
All Bar One
Browns
Castle
Ego Mediterranean
Ember Inns
Harvester
High St
Innkeeper's Collection
Miller and Carter Steakhouse
Nicholson's
O'Neill's
Orleans Smokehouse
Premium Country Pubs
Sizzling Pub and Grill
Stonehouse Pizza and Carvery
Toby Carvery
Vintage Inns
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