Whitbread, owner of Costa Coffee and Premier Inn, today warned that revenue growth could deteriorate if consumer spending is hit hard by a faltering economy, after reporting a rise in like-for-like sales of 7.1 per cent.

The restaurant and hotel group, which today reported figures for the 13 weeks to May 29, has been forced to introduce cut-price meal options at its Beefeater and Brewers Fayre dining chains to help persuade consumers to keep spending.

The company has adjusted its menus to give greater prominence to "white meat, not red meat" - a shift from beef to chicken that is cheaper for the consumer because the cost of production is lower. Some also argue it is a healthier option.

At its pub restaurants - a barometer for the financial health of middle Britain - like-for-like sales were up by a modest 3.6 per cent, and rising food prices had "put pressure on gross margins," according to the company's trading statement. The average bill was up 6.9 per cent.

Alan Parker, chief executive at Whitbread, said that the company "remains cautious, should the consumer environment become more challenging". Mr Parker gave his cautious outlook depsite the company beginning the financial year with high single-digit growth.

However, the cost-conscious mood among Britons helped to boost Premier Inn, the budget hotel chain. Like-for-like sales were up 10.7 per cent, making it the best performing part of the group's business.

Costa Coffee showed no signs of a consumer slowdown, with like-for-like growth up 6 per cent, although the chain is expanding internationally and reducing its dependence on the British economy.

Store numbers are up 289 to 1,051 during the year, and new franchise agreements were struck in Hungary and the Czech Republic.

The figures were announced before the company's annual meeting today.