UK pub operator Greene King expects weaker consumer confidence to persist in the near term, it said as it reported a dip in sales at its pubs.
The brewer operates about 2,924 pubs, restaurants and hotels across England, Scotland and Wales.
It said that pub like-for-like sales for the 18 weeks to September 3 were down 1.2%, compared with a market decline of 0.7%.
"Over the course of the year so far, most of the like-for-like sales decline can be attributed to value food, though more recently we saw some softening across other segments," the company said.
Of the 18 weeks, sales in first ten weeks were "broadly in line" with last year but trading weakened after weather worsened from the second half of July, the brewer said.
Rising inflation and muted wage growth after Britain's vote to leave the European Union last June is forcing many consumers to rein in spending at a time when restaurant and pub operators are also battling against higher costs.
UK businesses have had to contend with government initiatives such as the national living wage and apprenticeship levy while also faced with with input cost and food inflation arising from weakness in the British pound.
The company, which brews ales such as Greene King IPA, Old Speckled Hen and Abbot Ale, said that sales volumes for own-brewed brands were down 0.5% but the decline were smaller than the broader market trend.
Rivals such as Whitbread have also cautioned on the impact of a tougher consumer environment in the UK.
