Urban Pubs and Bars Defies Hospitality Gloom with Profit Doubling
One of London's largest pub chains has posted a remarkable doubling of profit, standing in stark contrast to the widespread challenges facing the hospitality sector. Urban Pubs and Bars, which operates more than fifty venues across the capital, saw its pre-tax profit climb to £1.7 million for the year ending in April, compared to £656,000 in the previous period.
Expansion and Financial Performance
The company's turnover increased by nearly a third to £39.1 million, driven by the opening of over a dozen new sites during the year, with an additional seven venues launched since May. Urban Pubs and Bars attributes its success to operating exclusively within London, benefiting from a large local customer base alongside a steady influx of tourists and visitors.
In accounts filed with Companies House, the group acknowledged the numerous challenges impacting the hospitality industry but emphasised its resilience. "The company remains highly profitable and well-funded," it stated. "We are confident that we can continue to trade well during these challenging times and believe that we will be able to capitalise on opportunities to expand the portfolio when good sites in London become available."
Hospitality Sector Under Pressure
These stellar results emerge as the broader hospitality sector warns of potential pub closures due to rising labour costs, persistent inflation, and soaring tax rates. A new website, ismypubfucked.com, uses official data from the Valuation Office Agency to highlight pubs most at risk from proposed business rate increases.
Notable examples in London include:
- The Spread Eagle in Wandsworth, facing a £104,000 hike (622% increase).
- The Beaten Docket in Cricklewood, with a potential £138,000 rise (431% increase).
- The Dog and Bell in Deptford, anticipating a £74,000 increase (426% rise).
- The Wickham Arms in Brockley, looking at a £37,250 hike (425% increase).
While government changes to business rate calculations may offer some respite, the website notes that rates are just one of many pressures, with rising wages, higher National Insurance, increased alcohol duty, soaring energy costs, and decreased customer spending all contributing to sector difficulties.
London Bucks Wider Woes
Urban Pubs and Bars continues to expand aggressively across the capital, with investors remaining supportive of further growth. Last month, the company acquired The Birdcage in East London from Brewdog, marking its sixth acquisition of 2026.
This follows the recent completion of five premium hospitality venues in January, including The Prince Regent in Herne Hill and a package of four established sites from Brunning & Price. The Brunning & Price venues comprise The Roebuck and The Steam Packet in Chiswick, The Queens in Crouch End, and Coco Momo in Kensington.
Trading throughout December was significantly ahead of the previous year, with excellent like-for-like sales growth of 14.5 per cent and a 40 per cent increase in total covers, underscoring the chain's robust performance in a challenging market.
