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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/11/mitchells-toasts-pub-sales-jump.jpg"><img class="alignnone size-full" title="Pub operator Mitchells &#038; Butlers said it has posted a rise in sales as more customers opt for higher-priced meals" src="http://londonglossy.com/wp-content/uploads/2010/11/min-mitchells-toasts-pub-sales-jump.jpg" alt="Pub operator Mitchells &#038; Butlers said it has posted a rise in sales as more customers opt for higher-priced meals"/></a></p>
<p>Harvester and Toby Carvery owner Mitchells &#038; Butlers has reported another leap in sales as more customers plumped for higher-priced meals.</p>
<p>The group, which has around 1,600 sites, revealed a 26.1% increase in full-year profits for the year to September 25 after like-for-like sales improved 2.8% and Mitchells outperformed the overall eating-out market.</p>
<p>It said its food-led strategy continued to reap rewards with a 3.7% sales rise in the first eight weeks of the new financial year, including a 6.9% improvement in food business as customers showed a willingness to trade up its menus.</p>
<p>The group has rolled out a strategy to focus on food sales as part of an overhaul announced in March to invest in its six mid-market eateries, including Harvester, Toby Carvery, Crown Carveries and Sizzling Pub Co.</p>
<p>Restaurant-led pubs are an attractive area for the industry after the smoking ban, alcohol duty increases and the recession impacted the drinking market.</p>
<p>Food now accounts for 47% of the company&#8217;s sales and Mitchells estimates that around two-thirds of total sales relate to a food occasion.</p>
<p>The group kept same-dish prices the same as last year but said food spend per head still rose 2.3% in the financial year as a result of menu changes, additional courses and the sale of more higher-priced items. It added that like-for-like drinks prices were up 3.7%, with volumes down 3.1%.</p>
<p>Mitchells said it faced higher regulatory costs in the year due to increases in the National Minimum Wage, statutory pay entitlements and alcohol duty.</p>
<p>There were also inflationary costs in food, drinks and distribution, which Mitchells offset with a significant fall in energy costs, efficiencies in menu management and food purchasing gains. Employment as a percentage of revenues increased slightly to 24.5% of sales.</p>
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