London Daily

Focus on the big picture.
Sunday, Jun 28, 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
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
UK Government Warns of Peak Electricity and Water Pressure Amid Ongoing Heatwave
New Nuclear Plant in Wales Named Gwyndod Power Station as Energy Strategy Advances
UK Announces First Major Hydropower Projects in Four Decades to Expand Renewable Capacity
Thirteen Men Charged in Major UK Sexual Abuse Case as Investigation Continues
UK Launches Cross-Sector Climate Security Taskforce Linking Environment and National Security
UN Secretary-General António Guterres Calls for Urgent Global Methane Emissions Cuts in London
World Bank Approves $1 Billion UK-Backed Financing Package for Ukraine Recovery
UK Pledges Emergency Aid and Rescue Team Deployment to Earthquake-Hit Venezuela
Bank of England Holds Interest Rates at 3.75 Percent for Fourth Straight Meeting
Record-Breaking Heatwave Puts Strain on UK Health Services and Energy Networks
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
Church of England Appoints Dr Linsay Cunningham to Lead Faith and Public Life Division
UK Armed Forces Day Marked Nationwide With Events From Aberdeen to the Scilly Isles
Rising Tensions in Edinburgh Prompt Joint Warning From Scottish Local Government Leaders
UK Construction Sector Forecast to Contract One Percent in 2026 on Cost Pressures
UK Parliament Backs 87 Percent Emissions Cut as Government Deepens Electrification Drive
British Chambers of Commerce Forecast Weak UK Growth as Investment and Demand Slow
Bank of England Holds Interest Rates at 3.75 Percent Amid Energy and Inflation Uncertainty
London Ambulance Service Reports Record Surge in Life-Threatening Emergency Calls During Heatwave
UK Parliament Approves Legally Binding 87 Percent Emissions Cut Target by 2040
United Kingdom Records Third Consecutive Day of Record June Heat as Europe Faces Worsening Heatwave
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
×