The Hungry Horse and Chef & Brewer owner, which has about 2,900 watering holes, restaurants and hotels has invested £10 million to boost its trading performance.

This has included promotions and bringing in more staff at busy times, after cut-throat competition in the casual dining market ate into its food sales. 

Half-year adjusted pre-tax profit was down 8 per cent to £127.9 million on 1.2 per cent lower revenue of £1.03 billion as like-for-like sales at its pub company business fell 1.4 per cent. 

Shares fell 20p to 520p. 

Chief executive Rooney Anand said trading had picked up since mid-October after a “challenging” first half when poor summer weather dampened demand. 

Its costs from the national living wage, business rates, the apprenticeship levy and duty increases will go up £60 million this year, while consumers ate out 13 per cent less frequently in the three months to October compared with last year. 

Mr Anand said: “Consumer confidence is subdued.

“They are tightening their belts, their expectations continue to increase, and they are also seeking out healthier food and drink options. 

“While we have initiated a number of activities to improve our competitiveness we believe that market conditions are likely to toughen over the next two to three years.” 

Rival Marston’s shrugged off higher wage and property costs and forecast more growth over the next year after its annual pre-tax profit rose 3 per cent to £100.1 million on 10 per cent higher sales of £992.2 million. 

The Pedigree brewer, which has more than 1,500 pubs, said like-for-like sales were up across its estate since the start of October and it is on track to open 15 pubs and bars and six lodges this year. 

Shares jumped 10¼p to 115p.