HARVESTER and Toby Carvery owner Mitchells & Butlers said soaring food and energy prices would continue to squeeze the business into next year.

Mitchells, which also owns All Bar One, said inflation and uncertainty over household spending posed challenges – but claimed its strategy to focus on food sales was going well after meals outsold drinks for the first time.

The company reported a 7.5% rise in total sales for the 28 weeks to April 9, while total drinks sales grew by 1.7% in the same period.

Mitchells, which has almost 1,600 outlets, reported a 14% drop in pre-tax profits to £63m following the £373m sale of drinks-led brand Stonegate.