Wetherspoon’s CEO has announced that the popular pub chain will maintain current prices for food and beverages throughout the upcoming months. This decision follows a previous price increase of up to 30p on selected drinks and meal deals earlier this year.
Sir Tim Martin, speaking to The Sun, confirmed the pricing strategy, stating, “We intend to hold prices at least for the summer and autumn.” In addition to discussing pricing, he criticized the tax regulations that impose a 20% VAT on food and drinks in pubs and restaurants, contrasting this with supermarkets that pay zero VAT on similar products. Martin emphasized the need for tax equality between pubs and supermarkets.
Wetherspoon’s expansion plans include the opening of 30 new pubs in the coming year, generating 1,800 job opportunities. Half of these new establishments will be managed directly by Wetherspoons, with the remainder operated by franchisees. The list of locations for the 15 company-managed pubs includes Edinburgh Old Town, Farnham in Surrey, Basildon in Essex, Manchester, Heathrow and London Bridge Airports, Paddington, and Glasgow.
The pub chain currently operates 794 pubs, having opened three new locations and sold nine in the past year. Despite the challenges posed by increased labor costs due to higher National Insurance contributions and minimum wage rates, Wetherspoon anticipates meeting its profit targets for the year.
Recent performance data indicates a 5.1% sales increase for Wetherspoon in the three months leading up to July 20 compared to the same period last year. Sales volume has surpassed pre-pandemic levels, with strong demand for Guinness and breakfast offerings contributing to the positive trend. Sir Tim Martin highlighted the success of Guinness sales and the significant rise in chicken sales compared to pre-pandemic levels.
Julie Palmer from business advisory firm Begbies Traynor noted that while many pubs face closure risks, Wetherspoon’s scale and financial management position the chain well to withstand industry pressures. She suggested that the future of pubs may shift towards offering unique dining experiences or operating as large, well-established entities like Wetherspoon.