Young’s revenue surge provides ‘big dose of cheer’
London and south-east-focused pub and hotel operator Young’s has seen its revenue increase by 9.4% during the first 14 weeks of the year. db reports.
The results, which were released this week, were buoyed by “favourable weather” and a bustling summer sporting calendar assisting the business to drive higher sales.
Young’s had recently completed the acquisition of eight gastropubs and pubs with rooms from Cubitt House London Pubs, a move that saw the company expanding its portfolio and reach further across the capital.
A positive start
Speaking about the results, Young’s chief executive Simon Dodd said the business had made a positive start to the financial year and explained that “this was supported by favourable weather, a busy summer of sport, with England’s success in the World Cup so far, a welcome boost and contributions from our expanded estate, as we integrate the Cubitt House pubs”.
Assessing the results, Wealth Club’s chief investment strategist Susannah Streeter told the drinks business: that “Young’s has provided a big dose of cheer, with revenue up 9.4% for the first few months of its new financial year. It’s basking in the sunshine of the summer of sport which has pulled punters in, with extended hours creating even more happy hours for the pub chain.”
Streeter explained to db that, from her perspective, it is clear that “Young’s gastropubs and boutique rooms in characterful locations, including gardens and riverside sites, have proved particularly appealing to locals and visitors who have been enjoying the heatwave”.
This, she noted, means that the company is “managing to navigate the challenges in the hospitality industry adeptly, with curated offerings making it easier to charge premium prices to offset higher payroll costs”.
Boosted footfall
Young’s also revealed increased customer demand generated by the FIFA World Cup, with England’s progress in the tournament had helped to boost footfall. Extended licensing hours for later evening matches had also meant that a number of venues had been able to remain open and cater for fans watching the games. Plus, the Wimbledon Championships had also had a halo-effect on trading since Young’s operates several pubs located near to the tournament.
Despite these successes, Young’s reputation had taken some knocks over the past year with beer expert and author Roger Protz stating that he would no longer drink Young’s beers since brewing was being moved once again along with Comedian Shappi Khorsandi slamming a Young’s pub for its attempt to “police women’s clothing”.
Despite setbacks, the results still fly in the face of the downward trend that the sector has witnessed elsewhere while struggles remain evident, Dodd indicated that the company was still had reasons to show “confidence” and added: “While the backdrop remains challenging, we are well-positioned and looking ahead to the rest of the year with confidence.”
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