JD Wetherspoon will try to "keep price increases to a minimum" despite facing pressure from rising labour costs, following a year of improved sales and profits.
The pub group, operating nearly 800 UK establishments, reported revenues of £2.13 billion for the year ending July 27, up 4.5 per cent on the prior year.
Like-for-like sales, stripping out openings and closures, also saw a significant rise of 5.1 per cent. This growth was driven by both strong bar and food sales.
However, hotel room sales fell by nearly 12 per cent after exiting UK online booking agents.
Chairman Sir Tim Martin told the PA news agency that "younger people’s drinks," such as cocktails and "trendy" spirits like Au Vodka, are increasingly popular across their pubs.
“Real ale has made a comeback, with volumes challenging pre-pandemic levels,” he said.
“Wine, which had been a bit slow, is at a record.”
Sir Tim also said that, across its food menu, chicken-based dishes were selling well, with Korean chicken a “big success” over the latest year, while breakfasts were continuing to rebound with a record-high volume of sales.
Wetherspoon’s said like-for-like sales grew by 3.2 per cent in the first few weeks of the new financial year.
The group ran 794 pubs at the end of the financial year, and plans to open 15 managed pubs and 15 franchised pubs in the year ahead.
Sir Tim said increases to national insurance contributions and wages was adding about £60 million to the chain’s yearly costs, while it was also facing an impact from energy charges and new packaging taxes.
Wetherspoon employed an average of nearly 42,100 staff across its pubs and head office over 2025.
“Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum,” he said.
Sir Tim also told PA that “some prices are inevitable when taxes go up” in relation to the wider pub industry, but that Wetherspoon would “try very hard” not to hike its own prices.
“The company currently anticipates a reasonable outcome for the financial year, although Government-led cost increases in areas such as energy may have a bearing on the outcome.”
Robyn Duffy, consumer markets senior analyst at RSM UK, said Wetherspoon’s “continues to outperform the wider UK pubs market”.
“Drinks sales remain robust, while the food division continues to broaden its appeal across the day, with all-day breakfasts and other affordable staples proving especially popular,” she said.
“Hotel stays dipped this year, but that hasn’t dented overall performance.
“Crucially, Wetherspoon’s highly competitive pricing continues to underpin its ability to attract cost-conscious consumers.”
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