Like-for-like sales at managed pubs operated by Punch Taverns have risen 7.3%.
The sharp rise, covering the 12-week period to 28 May, is a rare fillip for a sector battling rising costs and struggling to tempt cash-strapped customers out of the off-licence and into the pub.
Food sales at Spirit, the name of Punch’s managed division, posted a 8.4% increase while drinks sales rose 7.3%. Meanwhile, average net income for leaseholders rose 1.3%.
Punch Taverns, whose high street brands include Chef & Brewer, Fayre & Square and Flaming Grill, has also reported that demerger plans announced in March are running smoothly.
The UK’s largest pub group says it’s on course to complete the separation of its managed and leased operations into two public companies by the end of the summer.
The company, which attributed the rise to the spell of hot weather and its refurbishment programme, says it’s on track to meet its overall profit projections for the year.
Despite the challenging UK consumer environment we are on track to meet our full-year expectations
Ian Dyson, Punch Taverns chief executive
Share prices jumped 6% at the news, despite its tenanted business posting a 3.3% drop in trade.
Chief executive Ian Dyson said: “Our operational initiatives continue to translate into improved performance for both Spirit and Punch. This has been achieved during a period of substantial change as we prepare for the proposed demerger of Spirit. Despite the challenging UK consumer environment we are on track to meet our full-year expectations.”
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