JD Wetherspoon forecasts a “reasonable” full-year outcome despite rising staff costs, boosted by recent sales figures attributed to favourable weather conditions.
The pub chain, operating 795 locations across the UK, reported a 5.6 per cent increase in like-for-like sales during the 13 weeks leading up to April 27th. Year-to-date, comparable sales have risen by 5.1 per cent.
Chairman Tim Martin acknowledged the impact of good weather on recent trading, but expressed optimism for the financial year’s results.
He 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 per week.”
This follows earlier warnings from the group regarding a £60 million surge in labour costs from April onwards, due to increases in both employers’ national insurance contributions and the minimum wage.
Mr Martin has cautioned over the impact of the surging wage bill and in January called on 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.
He added the chain was trialling a new gourmet burger deal, which he said has “proved extremely popular”.
