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Feature
Mitchells & Butlers cuts 1,300 jobs
All Bar One operator Mitchells & Butlers has axed 1,300 jobs to cut costs after its 2020 revenue plummeted by a third.
All Bar One owner Mitchells & Butler has cut 1,300 jobs (Photo: Mitchells & Butlers)
According to its full-year financial results, Mitchells & Butlers saw total revenue drop 34.1% to £1.5 billion (US$2bn), down from £2.2bn (US$2.9bn) in 2019. Operating profit for the 12 months to 26 September 2020 fell to £8 million (US$10.7m), compared with £177m (US$236m) in 2019.
In a presentation to investors, the group said it had faced a ‘challenging and highly uncertain trading environment, which depends on government restrictions’.
Through 2020, Mitchells & Butlers said ‘protecting jobs has been a priority’. However, the company acknowledged that it has ‘not been immune to the impacts of the pandemic’. As a result, the firm said it had been forced to make 1,300 redundancies since the fiscal year end.
Mitchells & Butlers is one of the largest operators of bars, pubs and restaurants in the UK. The company employs around 44,000 people across the UK.
Currently, all 1,477 of the operator’s venues in England are temporarily closed due to the second lockdown order, which will remain in force until 2 December.
In Scotland, 24 outlets are open while 56 are shut, and in Wales just three venues remain closed while 56 are open.
All 44 of Mitchells & Butlers’ German venues remain closed as the country ordered on-trade venues to shut until the end of November.
Phil Urban, chief executive of Mitchells & Butlers, said: “Throughout a very uncertain and challenging year our businesses and teams have adapted quickly, creating a safe environment for guests and putting us in a strong position to benefit when consumers are able to eat out again. We saw direct evidence of this from a strong trading period in July and August before further restrictions came into force.
“With our great estate, balanced portfolio of brands and proven management team, we remain optimistic that we will be able to regain the momentum previously built and continue to achieve sustained market outperformance, when the current operating restrictions are eased.”