All Bar One owner warns on cost headache as hospitality sector fights to recover after lockdowns

All Bar One owner warns on cost headache as hospitality sector fights to recover after lockdowns

Hospitality firms face a "major challenge" from higher energy and staff costs as they seek to rebuild following the pandemic, bar and pub operator Mitchells & Butlers has warned.

The company behind brands such as Harvester and All Bar One reported a second year in a row of annual losses though said in recent weeks sales had recovered to pre-pandemic levels.

It said demand seen since venues reopened should help it return to profitability but that higher costs - partly blamed on Brexit - would "inevitably" take their toll on financial performance.