Wetherspoons’ sales are booming – and it has one beer to thank
JD Wetherspoon has announced a significant surge in its recent sales, driven by the exceptional performance of Guinness and a notable rebound in breakfast demand.
The pub group, which operates 794 establishments across the United Kingdom and Ireland, reported a 5.1 per cent increase in like-for-like sales for the three months ending 20 July, compared to the previous year.
Sales volumes have now surpassed pre-pandemic levels after earlier concerns about a sluggish recovery across its estate.
Beyond breakfasts, robust draught sales were highlighted, with Guinness proving particularly popular, alongside growth in wine and an improvement in spirits.
This surge in demand for the Irish stout aligns with consistent reports from Guinness maker Diageo, which has noted its rapid growth in popularity.
Favourable weather conditions during the period also boosted visitor numbers, allowing many Wetherspoon pubs to capitalise on their beer gardens.
Wetherspoon’s chairman Tim Martin said: “Draught volumes are performing strongly with Guinness being the standout performer.
“On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead.
“Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50 per cent compared to pre-pandemic levels.”
Wetherspoon is expecting to meet its profit forecasts for the year, despite warning over the impact of higher labour costs following increases to employers’ national insurance contributions and the minimum wage.
It has previously warned it is facing a £60 million hit from the higher business costs.
Mr Martin has called on Prime Minister Sir Keir Starmer to equalise the VAT paid on food by pub and restaurant businesses with that of supermarkets to mitigate the loss.
Most food and drink in shops has zero VAT whereas restaurants and pubs have a standard rate of 20 per cent.
“This tax advantage allows supermarkets to subsidise the price of beer they sell,” Mr Martin said.
“The VAT distortions that exist today will inevitably create more supermarkets and less pubs.”
Nonetheless, the group has said it plans to invest in its pubs over the year ahead, including staff rooms and gardens.
It also hopes to open another 30 sites.
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