M&B to become food-led business

Mitchells & Butlers (M&B) has said it would sell some of its brands and overhaul the pay structure f

After a strategic review of its operations, the pubs-and-restaurants company has decided to more than double the number of outlets that carry its food-oriented brands over the next few years.

M&B will also boost executive pay by putting a greater emphasis on share options to "better align management with shareholders", said group chairman John Lovering.

The company is planning to withdraw from the "more price sensitive drinks-led businesses". It will reportedly sell 15 to 20 per cent of its business units and has earmarked 22 brands for sale.

Chief executive Adam Fowle said M&B would concentrate on its six biggest brands - Harvester, Toby Carvery, Crown Carveries, Sizzling Pub Co, Premium Country Dining and Vintage Inns - where the sales bias is towards meals rather than drinks.

These brands account for about 913 of M&B's 2,000 outlets, but the company says there is scope to increase this number to 1,900 locations. It believes there is a big opportunity for expansion as it looks to open in out-of-town shopping centres and retail parks.