Wetherspoons boss Tim Martin fires fresh price rise warning following Budget
Wetherspoons boss Tim Martin has said he is confident of a “reasonable outcome for the year,” despite warning of price rises across the hospitality sector following the Autumn Budget.
The pub giant reported record sales in the most recent quarter to 3 November even as cost inflation and tax hikes continue to bite British boozers.
Like-for-like sales grew 5.9 per cent year-on-year, with a particularly strong rise for the firm’s slot/fruit machines, which jumped 13.5 per cent.
But Martin said that price rises, which had slowly abated since jumping to elevated levels in 2022, had jumped “substantially” again following Rachel Reeves’ 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,” he told shareholders in a statement.
Following Labour’s October budget, taxes and business costs are expected to increase by around £60m, with a 67 per cent increase in national insurance contributions.
The pub sector’s lobby group, the British Beer and Pub Association, has warned of a “tsunami” of cost increases and a £310m bill following the budget.
Labour has, however, announced a 1.75 per cent reduction in beer/cider duty for draught products in the UK.
Wetherspoons shares have fallen over 20 per cent this year to date. The iconic haunt has disposed of five pubs in 2024, giving rise to a cash inflow of around £2.4m.
Its estate currently comprises 797 pubs, with three opening this year at Hull and Newcastle University, and in the 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,” Martin said.