JD Wetherspoon has reported a more than £30million loss after confirming plans to sell 32 pubs across the UK.
The pub chain said it is struggling to get punters back into its boozers after the coronavirus lockdown.
Founder and chairman Tim Martin said customer habits have changed, with more people choosing to drink at home.
“During lockdown, dyed-in-the-wool pub-goers, many for the first time, filled their fridges with supermarket beer – and it has proved to be a momentous challenge to persuade them to return to the more salubrious environment of the saloon bar,” he said on Friday.
“This competitive disadvantage has had an increasingly debilitating impact on the hospitality industry and will undoubtedly result in long-term financial weakness vis a vis supermarkets - which will also be harmful to employees, the Treasury and the overall economy.”
Wetherspoon has cut its losses significantly compared to when its pubs were closed over lockdown, but pre-tax losses still stood at £30.4million in the 12 months ended July 31.
The firm had reported a £167million loss last year, off the back of consecutive lockdowns. Before the pandemic, the company made a profit of £132million.
Sales were down 4.3% to £1.74billion in the year to the end of July.
Wetherspoon opened seven new pubs during the year, and sold, closed or ended the leases on 15 others. The business had 852 pubs in total in July.
“The company has improved its prospects in a number of ways in recent financial years," said Mr Martin.
"We own an increasing percentage of freehold properties; the balance sheet has been strengthened; interest rates have been fixed at low levels until 2031; we have a large contingent of long-serving pub staff and underlying sales are improving."
But he warned that the business is facing increasing costs.
“However, as a result of the previously reported increases in labour and repair costs and the potentially adverse effects of rises in interest rates and energy costs on the economy, firm predictions are hard to make,” he said.
The company statement said: “Wetherspoon and other pub and restaurant companies have always generated far more in taxes than are earned in profits.
“Wetherspoon, it’s customers and staff, generated total taxes in FY19, before the pandemic, of £763.6million. This equated to one pound in every thousand of UK government revenue.
“In the financial year ended 31 July 2022, the company generated taxes of £662.7 million.”
The latest financial update from Wetherspoon comes after the pub chain confirmed plans to sell 32 sites as part of cost-cutting measures.
The venues are being marketed by commercial property specialists CBRE and Savills. You can see a full list of the pubs here.
