British pubs operator Mitchells & Butlers is to focus on value-for-money eating out to help boost sales during "challenging" times as the consumer spending squeeze bites.

In an update today, the owner of Harvester and All Bar One chains said trade ticked up in the second quarter thanks to strong demand for food, which accounts for two-thirds of its sales.

M&B said underlying sales rose 1.1% in the 10 weeks to July 19, driven by a robust 5.1% rose in food sales. Meanwhile drink sales edged lower by 0.2%.

The owner of value dining outlets such as Pub & Carvery and the Sizzling Pub Co said based on trading in the first 42 weeks, full-year earnings should meet expectations.

"Market conditions continue to be characterised by robust demand for good value pub food and associated sales of drinks while beer market volumes have continued to fall by about 10% over the past quarter," M&B said.

Beer now accounts for just a quarter of sales while food represents two-thirds of the pub group's trade. Average meal prices are as low as £3.96 at some pubs, helping it sell over 110m meals a year.

"Market conditions are expected to remain challenging amid weakening consumer spending. This (value food) strategy will place us in a resilient position should general economic pressures increase," M&B said.

"Strong productivity gains and cost management measures continue to help offset the increasing input cost pressures in the current year. We expect that higher food and energy prices will intensify the cost pressures next year, although, as these prices are very volatile, the precise outlook is still unclear."

The group said it was facing increased competition at its high street chains, such as All Bar One and O'Neill's, and like-for-like sales were slightly lower.

Shares in the group dipped slightly following the statement, shedding 1.7% to 258p.