Whitbread 's (WTB) outgoing chief executive Andy Harrison will leave the group in very fine shape if the group's recent trading update is anything to go by. Ahead of the hospitality giant's first-half results, expected on 20 October, management revealed that like-for-like sales for the 24 weeks to 13 August grew 3.9 per cent, while total sales were up 11.8 per cent.
The group's trademark brands, high-street coffee shop Costa and hotel chain Premier Inn, have continued to lead the pack. Premier Inn is still winning market share, thanks to further investments in room expansion at home and overseas, and posted like-for-like sales growth of 5.3 per cent for the half. Management has set a target of opening 5,500 rooms in the UK, including 1,300 extensions.
But costs matter too, and investors will be looking for further updates on the impact of the new national living wage, which is expected to affect the hospitality sector more than any other. Management has already indicated that it will aim to offset the cost increase by making productivity improvements, efficiency savings and selected price increases.
