Food sales boost Greene King Greene King's strategy of cheering up cash-strapped consumers with what it calls "everyday treats" at its pubs and restaurants has buoyed full-year sales at the 213-year-old brewery group. The owner of the Loch Fyne, Hungry Horse and Old English Inns restaurant chains on Thursday said retail like-for-like sales grew 4 per cent in the 12 months to the end of April, with food sales leading the way, up 17 per cent. Rooney Anand, Greene King chief executive, said the group was benefiting from a broadening of its offerings beyond drinks into food, coffee, and accommodation. "People are treating themselves with affordable treats in these times of doom and gloom, and our pubs are well located and offer good value," he said. Although like-for-like drink revenues rose 2.5 per cent, the figures highlight many pub companies" increasing reliance on food sales as a way to bolster footfall and combat cut-price alcohol deals from supermarkets. Rivals such as JD Wetherspoon have increasingly focused their business on food-led pubs and attracting new customers by broadening their appeal to women and the elderly. Suffolk-based Greene King said that its sales growth had continued into the new financial year, with the improving weather encouraging more consumers to eat out, with like-for-like sales at its retail division up 7 per cent in the past eight weeks. However, sales at Pub Partners, Greene King's struggling tenanted pub division fell 2.2 per cent to £162.7m and operating profit was down 3.1 per cent to £72.2m. Mr Anand said the division, which sold off 103 underperforming outlets during the year and cut its total to 1,454 sites, would continue "trimming the bottom end" of Pub Partners" estate this year. Greene King's brewing division, which makes Greene King IPA, Old Speckled Hen and Abbot ales, reported a 0.7 per cent drop in sales of its core ale brands, but the group highlighted that this was in a UK ale market that declined 5.3 per cent last year. The figures were rosier at Greene King's retail division, where revenues climbed 13.1 per cent to £803.9m, buoyed by a year-on-year jump in its pub numbers from 892 to 938. Our growth was achieved against the backdrop of a challenging market, with consumer confidence and household discretionary incomes still under pressure. We do not anticipate any improvement in these conditions in the near future," said Mr Anand. In the year to April 29, pre-tax profit rose from £116.8m to £125.1m, on revenues up 9.4 per cent to £1.14bn. Diluted earnings per share fell from 49.6p to 47.5p and the board recommended a final dividend of 18.1p per share, up 7.7 per cent on last year, taking the total payout for the year to 24.8p per share (23.1p). Greene King shares fell 0.5p to 531p in early London trading.