Wetherspoon sales increase but group warns of costs pressure

Like-for-like sales were up 2.4 per cent in the 13 weeks to April 24, leading to a 2.4 per cent increase over the 39 weeks to the same date.

In a brief trading update, the company said it “continues to be faced with rising costs for a wide range of goods and services” combined with a drop in disposable income for its customers.

Wetherspoon, which has 800 pubs, is being buffeted by increased taxes, labour costs and rising prices relating to utility bills and bar and food supplies.

But the company said it continues to expand, opening 29 new pubs since the start of the financial year. It aims to open 50 in the current financial year.

Wetherspoon recently warned prices in its pubs and those across the industry would need to rise by around 4 per cent to combat inflation, adding to the squeeze on customer pockets. This comes on top of a 3 per cent to 4 per cent hike in October, introduced after Wetherspoon faced price increases from suppliers.

But the company remains confident after an “encouraging” performance from its new pubs and expects a “reasonable” outcome for the current financial year.

Chairman Tim Martin said the company had shed “blood, sweat and tears” to drive growth in the third quarter in the face of low consumer spending.

Mr Martin said the company had brought in a wider spirits range, a beer festival and a new and improved menu in order to pull in customers.

“The industry is under extreme pressure,” Mr Martin said. “This is not change for change’s sake, we’re trying to make the company better.”