Sales have risen at JD Wetherspoon in its first quarter with the pub group opening further pubs and having more openings in the pipeline. However, the company has warned over price rises following Octobers autumn Budget.
In a trading update announcement for the 14 weeks to 3 November 2024, chairman Tim Martin-led highlights its like-for-like sales performance in comparison to the CGA RSM Hospitality Business Tracker average.
In August, the tracker reported industry like-for-like sales of +1.3%, compared to +4.1% for Wetherspoon. In September, the tracker reported industry sales of +1.7%, compared to +5.7% for Wetherspoon.
For the 14 weeks to 3 November 2024, like-for-like (LFL) sales were 5.9 per cent higher than the same period last year.
Bar sales rose by 5.7 per cent, food by 5.7 per cent and slot/fruit machines by 13.5 per cent. Hotel room sales fell by 2 per cent.
In the year-to-date, the company has opened two pubs – one in Marlow, Buckinghamshire, and another at London Waterloo station, with plans to open a total of nine pubs in the year, including sites at London Bridge station, Fulham Broadway underground station and Manchester Airport.
Five pubs have been sold in the year for a total of £2.4m, leaving Wetherspoon with a trading estate of 797 pubs.
Following the government budget on 30 October, Wetherspoon expects its taxes and business costs to increase by approximately £60m on an annualised basis in calendar year 2025, including an estimated 67% increase in national insurance contributions.
Wetherspoon chairman Tim Martin said: “The company achieved record sales in the 14-week period and staff retention continues to be at high levels.”
“Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the budget.”
“All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.”
“The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs.”
