The owner of some of Aberdeen's busiest bars and restaurants has seen its energy costs surge to £150million.
The boss of Mitchells & Butlers, the pub and restaurant group behind All Bar One, Miller & Carter and Harvester, has warned that rising energy costs and falling consumer confidence are making trading “very challenging”.
Phil Urban, chief executive, told The Times today that rapidly rising costs would squeeze M&B’s margins next year.
“We are also mindful of the pressures on the UK consumer over the coming months,” he added.
M&B said in a fourth-quarter trading update yesterday that its energy and utility costs had risen to roughly £150million this financial year. This is up from £80 million before the pandemic disruption in 2019.
The chain has six businesses in Aberdeen; Miller & Carter on Union Street, All Bar One in Marischal Square, O'Neill's on Back Wynd, The Ghillies Lair on Great Southern Road, Toby Carvery Cocket Hat on North Anderson Drive, and Stonehouse Buckie Farm on The Parkway.
The company is taking measures to cut energy bills, including installing voltage optimisers, but further cost rises next year are possible even after the government capped wholesale electricity and gas prices for businesses.
News of tougher trading prompted a market sell-off yesterday, with shares in M&B falling 20p (14.7%) to close at 115p.
Its share price has now fallen by 56% this year.