The chief executive of Wetherspoon has announced that the popular pub chain will not be raising prices on food and beverages in the coming months. This decision follows a previous price increase of up to 30p on select drinks and meal deals earlier this year. Sir Tim Martin, speaking to The Sun, stated that they plan to maintain current prices at least until the end of autumn.
In addition to discussing pricing, Sir Tim criticized the tax regulations imposed on pubs, highlighting the disparity in Value Added Tax (VAT) rates between pubs/restaurants and supermarkets. He emphasized the need for tax parity between the two sectors.
Wetherspoon’s expansion plans include the opening of 30 new pubs in the upcoming year, generating 1,800 job opportunities. Half of these new establishments will be directly managed by Wetherspoons, with the remaining half operated by franchisees.
Among the 15 pubs directly managed by Wetherspoon are locations in Edinburgh Old Town, Farnham in Surrey, Basildon in Essex, Manchester, Heathrow and London Bridge Airports, and Glasgow.
Wetherspoon currently operates 794 pubs, having opened three new sites and sold nine in the past year. The chain reported a 5.1% increase in sales in the three months leading up to July 20 compared to the same period last year, surpassing pre-pandemic sales levels.
Despite potential challenges from rising labor costs due to increased National Insurance contributions and minimum wage rates, Wetherspoon remains optimistic about meeting its profit targets for the year. The company highlighted the strong performance of Guinness and increased demand for breakfast offerings.
Julie Palmer from Begbies Traynor acknowledged the challenging environment for pubs, noting the risk faced by independent operators. She praised Wetherspoon’s financial stability and operational scale, which may shield it from the pressures affecting smaller establishments, suggesting a shift towards a model where pubs must excel in unique offerings or emulate successful large chains like Wetherspoon.