Mitchells & Butlers Germany serves strong sales figures for 2022
(+12.6% compared to 2019) / Loyal guests and satisfied employees are
crucial success factors (PHOTO)
Wiesbaden (ots) – With the 43 (in 2019: 46) Germans she looks after
Event gastronomy establishments of the brands ALEX (38) and Brasserie (4) as well as the
Steakhouse concept Miller & Carter (1) has Mitchells & Butlers Germany GmbH
in the past financial year (as of December 31, 2022) sales growth of 12.6
percent to 141.6 million euros compared to the pre-Corona year 2019 (125.8 million
EUR) achieved. Profits increased by ten percent in the same period.
Increasing productivity over inventory
This impressive plus in a difficult economic environment is all the more important
more gratifying than it is purely arithmetically with a smaller operating area than
was achieved in 2019. Because four closures of some not profitable
ALEX outlets in Berlin, Bielefeld, Bremen and Heilbronn were in the middle
brasserie launched last year in Frankfurt’s MyZeil shopping center
just a reopening opposite. Bernd Riegger, since taking over the
ALEX chain by the British full-service caterers Mitchells & Butlers
1999 Managing Director of Wiesbaden-based Mitchells & Butlers Germany
GmbH (MABG), sees the strategic direction of the company through this
very positive result confirmed: “One of our main goals last year
Fiscal year was increasing productivity over stock.’ A
Objective, which is also due to the desire to expand, which was slowed down by Corona
was. Instead, MABG focused on increasing the areas in
three existing companies (Paderborn, Zwickau and Karlsruhe) and missed the
ALEX Mainz and ALEX Ludwigshafen in spring and autumn 2022
comprehensive redesign. The company started with these two pilot operations
a complete change of concept – away from the Mediterranean and towards the
modern-urban look – one that will be available in all German ALEX companies in the medium term
should be realized.
Moderate price increases
Of course, the increase in sales of EUR 15.8 million compared to 2019 (+67.8
million i See 2021) also against the background of price increases due to
increased energy and food prices and increased minimum wages
become. Bernd Riegger emphasizes: “We have only had very moderate prices since 2019
raised by a total of about ten percent and actually factored in that
Additional expenses in the areas of logistics, energy, personnel costs and
Don’t let food be completely allocated and thus affect our
would affect earnings.”
Sales growth despite reduced space
The fact that the profit in 2022 was still able to increase by ten percent compared to 2019 is
attributed to several factors. Although the first months of the past
year were still characterized by corona restrictions and despite a reduced area
compared to 2019, is the number of guests compared to the pre-Corona year
increased significantly.
Fair value for money increases the number of guests
With a view to the overall economic context, the system developer has apparently
recovered significantly faster than other hospitality businesses. Why is that?
Bernd Riegger is convinced that the two brands ALEX and Brasserie not only
have a lot of loyal regular customers, but above all as a mid-market player
a wide range of culinary delights at an extremely fair price
value for money given the changed consumer behavior of many people in
Germany score: “We are observing two effects: an increasing trading down,
i.e. people who go to cheaper restaurants than before the crisis because
Inflation and higher energy prices on the available, often not increased
depress net income. On the other hand, many people had through the
Increasing the minimum wage, which in many companies is already midway through
was brought forward last year, suddenly had more money available and wanted it
treat yourself.” It started at breakfast and led to MABG
its breakfast buffet expertise (more than 150 items!) at a high level
could stabilize: With more than 25 percent, the morning business carries
now contributes to total sales and consolidates ALEX’s position as a number
One (outside the hotel industry) in the German breakfast market.
Change of concept bears fruit
MABG has lost area compared to 2019. But the new establishments
those that only opened in 2019 (ALEX Hamburg Überseebrücke, ALEX Frankfurt MyZeil,
Miller & Carter Steakhouse Frankfurt) and their potential due to the corona
could not develop properly, practically doubled their monthly sales
in 2022. This was joined by the two ALEX in Mainz and Ludwigshafen, the 2022
for around EUR 1.1 million (from MABG’s own cash flow holdings) according to the new
“Urban Living” theme were remodeled and their monthly sales according to the
around six weeks of closure by up to 30 percent compared to 2019
could.
Employees in focus
Fortunately, the personnel situation has now at least increased
Pre-corona level stabilized (2,260 employees as of March 1, 2023 compared to
2,038 at the end of 2019). As a result, MABG was able to cope with the higher number of guests
act, even if terraces are still partially closed last summer
had to because the rush could not be coped with due to staff shortages
was. After all, around 600 are during the corona-related closures
Workers migrated, primarily mini-jobs or part-time employees. At the
The situation presented itself as less of a problem for core personnel
the diverse, newly introduced MABG internal programs for
Employee loyalty, such as early minimum wage increases or – from
Shift manager level – additional company health insurance or
Inflation Compensation Premiums. In addition, Mitchells & Butlers Germany
also in times of crisis as economically more stable, more reliable, more credible
and family employers can profile what employees are using
Loyalty and a good working atmosphere was rewarded.
Bernd Riegger has another reason for the more than
satisfactory financial result: “We have permanent crises
survived well because we have done solid business in the past and
as a well-rehearsed management team that has been with few exceptions for over 20 years
working together, were able to react flexibly to all challenges. Before
Above all, we never focus on our employees and our guests
lost. The guest is king and we see ourselves as guest-hosts. that like
might sound a little conservative, but we firmly believe that
soft factors such as appreciation and hospitality, emotions and experiences
in addition to an attractive gastronomic offer at a reasonable price
Value for money are key to our success.”
Outlook 2023
The topic of expansion has gained new importance after the Corona break.
The motto is quality over quantity. The real estate offers must convince
the rental periods should be generous. “Since we all restaurants ourselves
operate, our focus is on the profitability of each individual outlet. We
so you don’t have to break anything over your knee.” At the end of the year, a new ALEX in
of the Dreiländergalerie in Weil am Rhein. The contract is already
signed. Another contract signing is imminent. Lot of money
MABG will use its own cash flow for the coming years
ALEX concept renewal in hand. That it will be significantly more than
originally estimated, will be based on the calculated time span of four years
until it is implemented in all German companies. Due significantly
increased costs – from building materials to craftsman services to the interior
– MABG instead calculates an investment volume of 350,000 euros per company
now with around 600,000 euros. In 2023 there are currently only four conversions
planned, the redesign is already underway in Regensburg and Braunschweig. For
For the current financial year, Bernd Riegger forecasts sales growth of
about 13 percent, unless unforeseeable events occur again or
the summer rains completely or gets too hot.
What good are the best forecasts if no guests come? Because without
happy employees, there are no happy guests. The topics
Personnel recruitment and retention as well as training and further education in the 2001
founded, company-owned “Academy” are taking a high rank more than ever
Importance at MABG. This is expressed not only in a stocked up
recruiting team or new social media tools for one-click applications,
but also through a considerably expanded program at the Academy
which also includes courses based on the values of Generation Z
or enable the further qualification of lateral entrants.
digitalization and sustainability are two other focus topics that are closely related
are intertwined. In the introduction and optimization of digital
Processes – from front-end to back-of-house have been developed in recent years
already invested several million euros. Currently, one deals specifically with this
put together project team at management level with the topics
Energy management and training. A large part of the energy consumption is eliminated
MABG on refrigeration and cooling equipment. This is just one of many segments
with significant savings potential through the implementation of digital
tools and processes planned for this year.
Further information at: http://www.mabg.de | http://www.dein-alex.de |
http://www.deine-brasserie.de | http://www.millerandcarter.de
Press contact:
SvdH PR
Sabine von der Heyde
Phone: +49 (0)8093-999931-0
Email: mailto:[email protected]
Mitchells & Butlers Germany GmbH
Bernd Riegger (Managing Director)
Phone: +49 (0)611-160580
Email: mailto:[email protected]
Further material: http://presseportal.de/pm/112757/5470976
OTS: Mitchells & Butlers Germany GmbH