By Salma El-Sakka
JD Wetherspoon plans to open up to 25 new bars over the next year as the pub chain reported an 8.2 per cent rise in first-quarter like-for-like sales.
Six new locations confirmed
The company has identified at least six sites for upcoming managed pubs: London’s West End, West Bromwich, Hull, Edinburgh, Barcelona Airport, and Amersham, where a pub is set to open in December.
Recent openings and sales performance
Six managed pubs have already opened in the current financial year at Manchester Airport, Heathrow Airport, Crewe, Ferndown, Dibden Purlieu, and Kempston.
Like-for-like sales grew 8.2 per cent in the 14 weeks to 1 November, driven by a 9.4 per cent increase in bar sales and a 6.8 per cent rise in food sales, though growth slowed to 7.5 per cent in the most recent five weeks.
Chairman highlights profit challenges and labor cost disparity
Chairman Tim Martin said the company had a good start to the year but cautioned that profit forecasts remain highly dependent on sales growth, with the board comfortable with market expectations of £76.4 million in profit on a 53-week basis.
Pre-tax profits fell 28 per cent to £58.6 million in the previous financial year as rising staff and other costs offset strong sales.
Martin criticised government policies that he says widen the cost gap between pubs and supermarkets, noting that labor costs per pint are estimated at £1.68 in pubs versus about 15 pence in supermarkets, a factor he says has halved pub beer sales since the millennium and reduced employment.
