Breakfast demand boosts Wetherspoons

The decision to open two hours earlier has also resulted in a 40 per cent rise in coffee sales to 600,000 a week, making it one of the UK's biggest coffee chains.

The update came as the firm reported record profits and sales despite a trading environment that has seen many smaller pubs collapse.

Profits before tax and exceptional items rose seven per cent to 71m in the year to July 25 on total sales up 4.3 per cent to 996.3m. The positive trend has continued into the new financial year as like-for-like sales have risen by 1.5 per cent.

The company, which has around 775 outlets, created more than 2,400 jobs in the last financial year and said it expects to be one of the biggest and fastest growing employers in the UK over the next five years.

Having opened 47 pubs during the year to July, it said it plans to open at least the same number of pubs in the year to come.

Chairman Tim Martin said one of the biggest dangers facing the firm and the industry as a whole continued to be the increase in taxes and regulations.

He said: "It is hoped that the UK government's attitude towards pubs, in particular, changes and that a co-operative and helpful, rather than a punitive, approach is adopted."

The company said it was responsible for around 400m of tax payments in the last financial year, including VAT, excise duty on alcoholic drinks and employment and property taxes.

Mr Martin added: "The previous government adopted an approach of increasing taxes and regulations for pubs, greatly increasing the costs of running these businesses.

"Since the provision of a pint in a pub is far more labour intensive than a pint purchased in a supermarket, the effect of many of these taxes and regulations has been far greater for pubs than for supermarkets or other off-licensed premises."