JD Wetherspoon forecasts a "reasonable" full-year outcome despite rising staff costs, boosted by recent sales figures attributed to favourable weather conditions.
The pub chain, operating 795 locations across the UK, reported a 5.6 per cent increase in like-for-like sales during the 13 weeks leading up to April 27th. Year-to-date, comparable sales have risen by 5.1 per cent.
It now plans to open up in new sites.
Chairman Tim Martin acknowledged the impact of good weather on recent trading, but expressed optimism for the financial year's results.
He said: “Bearing in mind that recent trading has been helped by favourable weather, the company anticipates a reasonable outcome for the financial year, notwithstanding previously reported wage and tax increases of approximately £1.2 million per week.”
According to The Sun the company is planning pubs in six new locations. These are:
- Douglas, Isle of Man - May 14
- Fulham, SW London - June 17
- Kenilworth, Warwickshire - July 30
- Tooley Street, London Bridge - August 28
- Basildon, Essex - September 23
- Merchant Square, Paddington - late summer
This follows earlier warnings from the group regarding a £60 million surge in labour costs from April onwards, due to increases in both employers' national insurance contributions and the minimum wage.
Mr Martin has cautioned over the impact of the surging wage bill and in January called on Prime Minister Sir Keir Starmer to cut pub food taxes before the jump in costs linked to last October’s Budget.
Wetherspoon said total sales in its most recent quarter were up by a more muted 5 per cent and by 4 per cent year to date as it sold off seven venues.
Mr Martin said the group was also investing in new staff facilities across 520 pubs, with 49 in the current financial year, including new staff rooms and changing rooms at a cost of around £100,000 per site.
He added the chain was trialling a new gourmet burger deal, which he said has “proved extremely popular”.
