London Daily

Focus on the big picture.
Tuesday, Sep 15, 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
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
Lindy Cameron Appointed First Female Permanent Under-Secretary at UK Foreign Office
UK Government to Rewrite Student Loan Guidance After Mis-Selling Criticism
Welsh First Minister Warns Andy Burnham Government to Respect Devolution
Trump’s Falkland Islands Remarks Trigger New Diplomatic Tension With Britain
Reform UK Receives Record £72 Million Donation From Cryptocurrency Billionaires
UK Bans Imports From Israeli West Bank Settlements and Sanctions Supporting Institutions
Bayeux Tapestry Draws Large Crowds at British Museum
Cuts to International Aid Raise Concerns Over Fragile Overseas Health Systems
UK Airlines and Logistics Operators Adjust Capacity as Fuel Costs Rise
UK Mortgage Arrears Edge Lower in Second Quarter
UK Government Advances New Devolution Offers for English Councils
UK Parliament Begins Debate on NHS Governance and Single Patient Record Reforms
Andy Burnham Launches Number 10 North Devolution Initiative
UK Parliament Rejects Assisted Dying Bill for Terminally Ill Adults
UK Bans Goods From Israeli Settlements in the Occupied West Bank
UK Economy Grows 0.4% in July as Technology Services Strengthen
Metropolitan Police Continue Investigation Into Reform UK Political Financing
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
×