London Daily

Focus on the big picture.
Friday, Jul 24, 2026

UK pub chains warn of price rises due to increase in food and fuel costs

UK pub chains warn of price rises due to increase in food and fuel costs

Marston’s phases out ‘two-for-one’ meal offer while Mitchells & Butlers increases prices to cope with rising costs of utilities, wages and food
Two of Britain’s largest pub groups have warned that punters may have to pay more for a meal and see fewer discounts on the menu as they struggle to absorb rising energy and food costs.

The pub and restaurant group Mitchells & Butlers, which runs pub chains including O’Neill’s and restaurant brands such as Harvester, said it was facing a difficult trading environment. Its rival Marston’s said it was working to mitigate inflationary rises through a combination of cost-cutting and “pricing strategies”.

“Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages and food,” said Phil Urban, the chief executive of Mitchells & Butlers.

Mitchells & Butlers, which has 1,600 UK venues and also runs chains including All Bar One and Toby Carvery, forecast that its costs for the full year would be about 11.5% higher than in 2019, lifting its cost base above £2bn from £1.8bn previously. It predicted its costs could rise by another 6% next year, depending on the volatility in energy markets.

The London-listed hospitality group said it had already bought about 80% of the energy it will need for this year, and about 10% of next year’s requirement.

Urban said the company had already increased some of its prices by about 3% in April, but had chosen not to introduce “blanket price rises”.

“We tend to be a little bit more sophisticated than that; we try to protect entry dishes and entry products and we try to put more premium offers on to allow people to ladder up through the menu if they want to. And by doing that, you can drive spend,” Urban said.

Marston’s, which runs about 1,500 pubs, said it had reduced the numbers of dishes and menus available in its venues, after a review that it said had allowed it to be more confident in its pricing decisions. The company is also phasing out its cheapest two-for-one food offer.

Despite this, Marston’s warned that higher costs would “inevitably” have an impact on its full-year earnings. “We are navigating our way through cost increases,” said Marston’s chief executive, Andrew Andrea. “The pub remains the home of affordable socialising and has continually proven its resilience in previous times of economic challenge.”

Both Mitchells & Butlers and Marston’s said they had not yet noticed their customers cutting back on spending or visiting less frequently, as the cost of living crisis begins to bite. “I wouldn’t be able to point to any change in behaviour at the moment,” said Urban.

“In previous recessions, this sector has proved to be fairly resilient as people tend to protect their social lives, and it is more luxury goods that tend to go by the wayside. But it is early days and we are very conscious that utility bills are probably now hitting.”

Other hospitality businesses said they were currently absorbing higher costs, but warned it would knock their profits.

“Electricity has more than doubled, food is about 15% [higher] and labour costs are about 7%-8% [up],” said Clive Watson, chair of the City Pub Group, which runs 45 pubs across southern England and Wales.

“If we are not raising our prices for our food and drink – and we don’t think that it is the right thing to do at the moment – then we are going to take these costs on the chin,” Watson told BBC Radio 4’s Today programme.
Newsletter

Related Articles

0:00
0:00
Close
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
IMF Warns UK Economic Growth Will Slow to One Percent in 2026
UK Inflation Falls to Two Point Six Percent in June as Food and Energy Costs Ease
United Kingdom Joins European Union Loan Mechanism to Support Ukraine’s Defense Needs
Prime Minister Andy Burnham Introduces Two-Pound Bus Fare Cap and Energy Tax Relief Measures Across England
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
×