All Bar One and Harvester owner Mitchells & Butlers has reported slowing sales ahead of the first winter for smoking bans in England and Wales.
Despite a helping hand from the rugby World Cup and football fans following the efforts of national teams to qualify for next year's European Championship, overall like-for-like sales grew by 1.4 per cent in the seven weeks to November 17.
This compared with three per cent in the 12 months to September 29 and the group added: "The outlook for consumer spending remains uncertain and the first winter of the English smoking ban will be challenging."
Full-year pretax profits dipped marginally from £208 million to £207 million, while costs linked to a shelved property deal with entrepreneur Robert Tchenguiz have risen to £260 million.
Despite an overall sales slowdown, M&B, which also owns the O'Neill's and Toby Carvery chains, recorded more positive signs from its English pubs since the ban in July.
It said like-for-like sales amongst previously smoking English pubs had increased 1.5 per cent, with food up five per cent.
The company said the performance was in line with sales trends in Scotland last year.
Chief executive Tim Clarke said: "The regular smokers are coming out a bit later and less often. But we are seeing huge numbers of new customers coming in and using our pubs."
Food was becoming increasingly becoming part of the firm's offer, the 100 million meals sold representing 37 per cent of sales.
Mr Clarke added the group had enjoyed resilient trading, although he acknowledged fears following the run on Northern Rock, and tightening consumer spending.
"We are very much the leading player in the eating out market, we sold more than 100 million meals last year. The average spend per head is £6 so we offer great value for money. We have a very high quality estate which has had a lot of investment and is in good condition, and we have the quality of our brands."
Mr Clarke added it was still committed to a property joint venture with Mr Tchenguiz despite disruption in debt markets delaying the deal, which is due to feature 1,300 pubs and £240 million of rent.
M&B wants to return cash to shareholders through a property transaction, but its losses on a hedge against rising interest rates - taken out as part of the deal before the summer's financial turmoil - have spiralled as markets now expect falling borrowing costs.
The Birmingham firm added it was considering converting to a low-tax property trust status as it warned waning consumer confidence could hit spending.
In August M&B was days away from placing up to 2,000 pubs into a joint venture with biggest shareholder Robert Tchenguiz.
Shares closed down 35.5p at 585.5p.
