The chief executive of Wetherspoon has announced that the popular pub chain will not be raising prices for food and beverages in the upcoming months. This decision follows a previous price increase of up to 30p on certain drinks and meal deals earlier in January. Sir Tim Martin stated to The Sun that they plan to maintain current prices at least through the summer and autumn.
Additionally, Sir Tim criticized the tax regulations imposed on pubs, highlighting the discrepancy where pubs and restaurants are subject to a 20% VAT on food and drinks, while supermarkets are not taxed on similar items. He emphasized the need for tax equality between pubs and supermarkets.
Wetherspoon recently disclosed their intention to launch 30 new pubs in the upcoming year, which is expected to generate 1,800 job opportunities. Half of these new establishments will be directly managed by Wetherspoons, while the other half will operate under franchise agreements.
The new pubs to be managed directly include locations in Edinburgh Old Town, Farnham in Surrey, Basildon in Essex, Manchester, Heathrow and Gatwick Airports, London Bridge, Paddington in London, and Glasgow.
Wetherspoon currently operates 794 pubs, having opened three new locations and sold nine in the past year. The company reported a 5.1% increase in sales for the three months leading up to July 20, compared to the same period last year. Sales volumes have now exceeded pre-pandemic levels.
Despite potential challenges from rising labor costs due to increased National Insurance contributions and minimum wage, Wetherspoon anticipates meeting its profit targets for the year. The company foresees a £60 million impact from heightened business costs. Notably, Guinness has been a top-selling product, contributing to overall sales growth alongside a surge in demand for breakfast items.
Julie Palmer from Begbies Traynor mentioned that while many pubs face closure risks, Wetherspoon’s size and financial management strategies should shield it from such pressures. She suggested that the future pub landscape may require establishments to offer unique dining experiences or operate on a large scale like Wetherspoon to thrive.