Young & Co’s Brewery has reported a strong start to its financial year after the FIFA World Cup, the Wimbledon Championships and favourable summer weather boosted customer spending, highlighting the resilience of premium pub operators despite mounting cost pressures across the hospitality sector.
The London-focused pub and hotel operator said total revenue increased 9.4 per cent during the 14 weeks to June 31 compared with the same period a year earlier. On a like-for-like basis, which excludes recently acquired sites, sales rose 5.5 per cent.
The performance was supported by exceptionally strong trading over the late May bank holiday, with riverside pubs and venues with outdoor gardens benefiting from warm temperatures that encouraged higher customer footfall.
Young’s also reported increased trade from England’s FIFA World Cup campaign, with extended licensing hours allowing several pubs to remain open late into the evening for supporters watching knockout matches.
The company’s estate in south-west London also benefited from increased visitor numbers during the The Championships, Wimbledon, with a number of its pubs located close to the All England Club.
Chief executive Simon Dodd said trading had remained “strong” throughout the opening quarter of the financial year, supported by favourable weather, major sporting events and contributions from the recently acquired Cubitt House portfolio.
Young’s completed the acquisition of eight premium gastropubs and pubs with rooms from Cubitt House earlier this year, expanding its presence across central London.
Despite the positive trading update, Dodd acknowledged that the wider operating environment remains difficult.
Hospitality businesses continue to face higher employment costs following increases to the National Living Wage and employers’ National Insurance contributions, alongside elevated food, drink and energy costs.
The sector has repeatedly warned that rising operating expenses are squeezing margins, particularly for independent operators.
Earlier this year, rival Fuller’s criticised what it described as growing regulatory and tax burdens, arguing that higher employment costs and government policy risk accelerating pub closures and reducing investment across the industry.
For investors, Young’s latest update suggests premium operators with well-located estates and exposure to tourism and major sporting events continue to outperform much of the wider hospitality market.
However, with inflationary pressures still weighing on costs, sustaining that momentum through the remainder of the year is likely to depend on continued consumer spending resilience and favourable trading conditions.
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