Wetherspoons reveals cost hit – as pub sales start to return to normal

Wetherspoons boss Tim Martin has revealed the chain is facing higher costs for food, drink and energy – as pub sales start to return to normal.

His remarks came as Wetherspoons reported a half-year loss of £13m but said sales in the most recent three-week period were just 2.6% below pre-pandemic levels in 2019.

The company, which operates more than 800 pubs, put up its prices by an average 10p a pint around the country and 20p in London earlier this month.

Image: Tim Martin said Wetherspoons was confident about a strong future if restrictions are avoided

Mr Martin said: “There is pressure on input costs from food, drink and energy suppliers, mitigated to an extent, by a number of long-term contracts.”

He also said the government’s costly COVID-19 policies and the Bank of England’s quantitative easing were to blame for “significant inflation and higher taxes”.

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Recent price pressures throughout the economy are generally attributed to soaring energy costs as well as supply chain hold-ups as businesses readjust to a post-lockdown world.

The impact on inflation of the Bank of England’s quantitative easing policies – sometimes described as money printing – in which it buys billions of pounds worth of bonds, or small parcels of government debt, is less well understood.

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Wetherspoons’ latest results showed it narrowed pre-tax losses to £13m for the six months to 23 January, compared with a £68m loss a year earlier, with sales of £807m that were 13.5% lower than pre-pandemic levels.

Mr Martin said: “Following a traumatic two years for many businesses and people, the ending of COVID restrictions has brought a return to more normal trading patterns in recent weeks.

“Draconian restrictions, which amount to a lockdown-by-stealth, are, of course, kryptonite for hospitality, travel, leisure and many other businesses.

“The company is confident of a strong future if restrictions are avoided.”

He also brushed off any concerns about worker or supply shortages, saying: “Contrary to some reports, the company has a full complement of staff and is fully stocked, with some minor exceptions.”