Pub group JD Wetherspoon has said it expects a “reasonable” full year result despite soaring staff costs as good weather helped buoy recent sales.
The chain of 795 pubs across the UK reported like-for-like sales up 5.6 per cent in its third quarter to April 27th. Comparable sales rose 5.1 per cent overall in the group’s year-to-date.
Chairman Tim Martin said: “Bearing in mind that recent trading has been helped by favourable weather, the company anticipates a reasonable outcome for the financial year, notwithstanding previously reported wage and tax increases of approximately £1.2 million (€1.4 million) per week.”
The group had previously warned over a £60 million jump in labour-related costs from April amid increases in UK employers’ national insurance contributions and the minimum wage.
Will DoorDash takeover of Deliveroo mean better pay and conditions for gig economy workers?
Mr Martin has cautioned over the impact of the surging wage bill and in January called on British prime minister Sir Keir Starmer to cut pub food taxes before the jump in costs linked to last October’s budget.
Wetherspoon said total sales in its most recent quarter were up by a more muted 5 per cent and by 4 per cent year to date as it sold off seven venues.
The group opened two new pubs in the year so far with plans to open up to another five pubs, with around a further 10 due in the new financial year.
Mr Martin said the group was also investing in new staff facilities across 520 pubs, with 49 in the current financial year, including new staff rooms and changing rooms at a cost of around £100,000 per site. - PA
