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Pub chain operator Mitchells & Butlers has reported an uplift in sales and said earnings would be in line with expectations for the year.

In a trading statement, the company said same outlet like-for-like sales grew 1.3 per cent in the nine weeks to September 20th, driven by food sales.

Mitchells & Butlers said it has seen uplifts in its formats focused on more affluent sectors of the market but there has been a slowdown in its mid-market, Harvester brand, "which we believe reflects the spending pressures on families with mortgages," the company said.

The All Bar One and Browns owner also said it has successfully reduced costs by over £20 million.

Despite these savings, like-for-like sales will have to rise by three per cent next year to achieve similar profits, Mitchells & Butlers said.

"We expect market conditions to remain challenging amid weakening consumer spending. In particular, we expect pressures on discretionary consumer expenditure to intensify the customer demand for both enhanced quality and value for money," the company said in the statement.

Mitchells & Butlers warned it "will face substantial cost increases, particularly in the areas of duty, employment, food and energy costs" over the coming year and urged the government to reconsider further increases to alcohol duty.

The pub industry has fallen on hard times of late, as it struggles to persuade cash-strapped consumers to leave their homes in favour of a night out.

Rival group Enterprise Inns has seen its share value fall so low that it has been dropped from the FTSE 100, while Punch Taverns has scrapped its dividend in a bid to boost its balance sheets.

Mitchells & Butlers will announce its preliminary results for the year ending September 27th 2008 on November 26th 2008.