Cost of living: Greene King sees some costs start to ease as it toasts bounce in annual profits
The UK's biggest integrated pub operator and brewer says it has focused on adapting menus to limit price rises and maintain value for customers during the cost of living crisis to date.
The chief executive of Greene King has told Sky News it is starting to see an easing of some cost pressures and hopes the trend will continue as the hospitality industry gets into gear for the summer.
Nick Mackenzie admitted that energy, food and labour costs meant the outlook continued to be challenging but there had been some progress in 2023 to date and he hoped fewer bill burdens lay ahead.
He was speaking to Ian King Live hours after the company, Britain's biggest integrated pub operator and brewer, reported a sharp rise in annual profits.
Greene King, which owns pub restaurant brands such as Chef & Brewer and Hungry Horse, reported a full year operating profit on an adjusted basis of £192.6m for 2022.
That was up from £18.6m in 2021 when COVID restrictions were still in place for much of the year.
The company, whose beer brands include Greene King IPA, Old Speckled Hen and Abbot Ale, said trade had returned to pre-pandemic levels by the spring of last year.
That was despite the impact of the deteriorating cost of living crisis which gathered pace significantly after Russia's invasion of Ukraine.
The war resulted in a surge in energy-driven inflation, with companies across the supply chain passing on their price rises down to the consumer.
Greene King said customer confidence remained "depressed" throughout the year though trade was boosted by major events such as the World Cup ahead of Christmas.
It focused on adapting menus to limit price rises and maintain value.
Mr Mackenzie told Ian King: "The outlook is still quite challenging. Costs are still a problem.
"The good news is on some levels the consumer has stayed positive about coming out to the pub and enjoying a pint or two... (but) the next 9 to 12 months are still going to be quite challenging for us.
"We still have the challenges around energy, we still have labour cost inflation in our business as well and food inflation is still high.
"My hope is during the course of this year it will come down, will start to ease."
Nick Mackenzie admitted that energy, food and labour costs meant the outlook continued to be challenging but there had been some progress in 2023 to date and he hoped fewer bill burdens lay ahead.
He was speaking to Ian King Live hours after the company, Britain's biggest integrated pub operator and brewer, reported a sharp rise in annual profits.
Greene King, which owns pub restaurant brands such as Chef & Brewer and Hungry Horse, reported a full year operating profit on an adjusted basis of £192.6m for 2022.
That was up from £18.6m in 2021 when COVID restrictions were still in place for much of the year.
The company, whose beer brands include Greene King IPA, Old Speckled Hen and Abbot Ale, said trade had returned to pre-pandemic levels by the spring of last year.
That was despite the impact of the deteriorating cost of living crisis which gathered pace significantly after Russia's invasion of Ukraine.
The war resulted in a surge in energy-driven inflation, with companies across the supply chain passing on their price rises down to the consumer.
Greene King said customer confidence remained "depressed" throughout the year though trade was boosted by major events such as the World Cup ahead of Christmas.
It focused on adapting menus to limit price rises and maintain value.
Mr Mackenzie told Ian King: "The outlook is still quite challenging. Costs are still a problem.
"The good news is on some levels the consumer has stayed positive about coming out to the pub and enjoying a pint or two... (but) the next 9 to 12 months are still going to be quite challenging for us.
"We still have the challenges around energy, we still have labour cost inflation in our business as well and food inflation is still high.
"My hope is during the course of this year it will come down, will start to ease."
