Pub chain JD Wetherspoon has revealed an increase in sales as it prepares for costs to jump in April due to wage and tax increases linked to the autumn budget. The company said like-for-like sales rose by 5.1% over the 25 weeks to January 19, compared with a year earlier.
It said rising food sales were a key driver, increasing by 5.6% year-on-year, while bar sales were up 4.5%. Wetherspoons highlighted that sales were particularly positive around Christmas, with a 6.1% rise in sales over the three weeks from December 16 to January 5.
Wetherspoon chairman Tim Martin said: “From April 1, labour-related costs at Wetherspoon will increase by around £60 million per annum. 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 also repeated calls to equalise the VAT paid on food by pub and restaurant businesses with that of supermarkets. Most food and drink in shops has zero VAT whereas restaurants and pubs have a standard rate of 20%.
The chairman said: “Wetherspoon therefore calls upon Sir Keir Starmer to redress this imbalance, thereby striking a blow for tax equality and ending discrimination in favour of dull dinner parties.”
A number of High Street names have already issued warnings over the changes – with Currys saying it will take on fewer staff because of the hike in empoloyers’ National Insurance contributions.
Two thirds (67%) of 52 chief financial officers surveyed for the British Retail Consortium (BRC) said they would raise prices in response to increases in employers’ National Insurance Contributions from April.
81 retail chief executives wrote to the Chancellor with their concerns about the economic consequences of the Budget, claiming that the industry’s costs could rise by over £7 billion in 2025 as a result of changes to employers’ National Insurance contributions, National Living Wage increases and the reformed packaging levy.