Fresh Thinking Needed for UK Pubs as Fullers Reports Christmas Bookings Surge and Rising Costs

The head of Fuller Smith and Turner has urged the Chancellor to introduce new measures to stimulate growth in the UK pub sector after robust bookings ahead of the festive period. Simon Emeny, executive chairman of the 336-venue group, criticised the current reliance on higher taxes, stating that the path to national prosperity lies in fostering meaningful economic expansion rather than further taxation.

This year, the hospitality sector has faced significant headwinds due to increased employers’ national insurance contributions and a higher national minimum wage. For Fuller’s, these changes add up to an additional £8 million in annual costs. Despite these challenges, the company reported encouraging demand, with Christmas bookings up 16 percent on last year, surpassing senior management’s expectations.

Fuller’s latest results, for the six months to 27 September, show like-for-like sales rising by 4.6 percent. The performance was driven by a focus on delivering a premium offer aimed at economically resilient customers. Drink sales advanced by 6.5 percent, food sales grew by 2 percent, and accommodation sales rose by 3.3 percent during the period.

Revenue for the half-year reached £207.5 million, while adjusted pre-tax profit increased by 28 percent to £22.5 million. Statutory profits fell to £21.1 million, compared to £29 million in the previous year, a decline attributed to a one-off profit from an asset sale in the prior period. The board responded by declaring an interim dividend of 7.85p, which represents a 6 percent increase on last year.

Founded in 1845 and now operating as a dedicated pub and hotel business, Fuller’s has invested £13.5 million in its estate over the first half of the year and plans to allocate another £15 million in the subsequent six months. Investment in the hotel portfolio has led to occupancy rates reaching 81 percent and increased revenue per available room to £115.76, a key industry metric.

Analysts at Peel Hunt have subsequently upgraded their profit forecasts for 2026 by 10 percent and indicated that there is potential for further positive revisions, dependent on the outcomes of the upcoming budget. Shares in Fuller’s closed 5.8 percent higher at 658p following the update.