Extreme heat deters customers from traditional roasts
Mitchells and Butlers has warned that the record-breaking temperatures during June have discouraged Brits from hearty roast dinners, particularly in its Toby Carvery chain. With over 100 locations nationwide, the brand typically relies on customers choosing roast meals year-round, but the heat wave led to noticeable changes in dining habits.
Beverages surge in popularity as food sales decline
While food sales dropped by 2.4% in the past quarter, bottled beverages, including brands like Moretti, saw a 2.6% increase. The trend coincided with the World Cup, which further boosted alcohol consumption as people gathered to watch matches. Drier weather appears to have driven demand toward cooling drinks over rich meals.
Company turnover climbs, but shares tumble
Mitchells and Butlers reported that overall turnover rose by 1.3% so far this year, compared to 2025, despite the dip in food sales. However, investors were rattled, with shares dropping as much as 4.4% to 263p in early trading. CEO Phil Urban noted the company’s resilience, crediting its diversified business portfolio for cushioning the impact of the extreme weather.
JD Wetherspoon also faces mounting challenges
Rival pub chain JD Wetherspoon reported its fourth profit warning in 2025, blaming soaring energy and food costs as well as higher business rates. The company is struggling to maintain margins as it faces rising expenses in areas like labor, repairs, and energy. Tim Martin, the founder and chairman, said profits will likely fall short of market expectations in the final quarter.
On Wednesday, shares in Wetherspoon plummeted over 9% to 686p, marking a 7% decline since the start of the year. The company already has a £70m profit target for the year, which is significantly below its £80m profit in 2024, highlighting the financial strain caused by inflation and rising operational costs.