Wetherspoons chief executive Tim Martin expressed optimism about achieving a “reasonable outcome for the year,” despite cautioning that the hospitality sector will face price increases in the wake of the Autumn Budget.
The pub chain reported record sales in the quarter ending 3 November, with a 5.9% year-on-year increase in like-for-like sales, and a notable 13.5% surge in revenue from slot and fruit machines, as reported by City AM.
However, Devon-based Mr Martin noted that prices, which had begun to stabilise after a significant spike in 2022, had “substantially” increased again following the budget announcement.
As a result, he anticipates that all hospitality businesses, including Wetherspoons, will raise their prices, while striving to remain competitive.
The Autumn Budget is expected to lead to a £60m increase in taxes and business costs for Wetherspoons, largely due to a 67% rise in national insurance contributions.
The British Beer and Pub Association has warned of a “tsunami” of cost increases, with a projected £310m bill for the industry.
However, the budget also included a 1.75% reduction in beer and cider duty for draught products in the UK.
Wetherspoons’ shares have declined by over 20% this year, and the company has sold five pubs in 2024, generating a cash inflow of approximately £2.4m. The estate of the company presently encompasses 797 pubs, having expanded with three new openings this year at Hull and Newcastle University, alongside the establishment at Haven Primrose Valley Holiday Park in Filey, North Yorkshire.
“The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs,” Mr Martin commented.