Wetherspoons punters could soon find themselves paying more for their pint, the chain’s boss Tim Martin has said. The warning comes as the worsening cost-of-living crisis bites into millions of UK households’ finances.
In its latest update to shareholders, the chain - which operates more than 800 pubs across the UK and Ireland - said it had returned to profitability, having not posted a yearly profit since July 2019. But it warned that it was still faced with “considerable” cost pressures.
The hospitality industry as a whole was badly affected by the coronavirus pandemic, when pubs were forced to close for months on end by lockdown restrictions. Despite trading conditions since returning to normal, Wetherspoons says it faces big challenges.
“As many hospitality companies have indicated, there is considerable pressure on costs, especially in respect of labour, food and energy. Repairs are also running at a higher rate than before the pandemic,” Tim Martin said.
Rising prices and the ongoing war in Ukraine have added to the problems facing the hospitality sector. The conflict has put wheat exports under strain, adding to the upward pressure on food prices in shops, pubs and restaurants.
In March, Wetherspoons raised its prices in response to mounting costs. The company added 10p to the price of a pint across most of the UK, while increasing prices by 20p per pint in London.
Wetherspoons said in its latest financial update that sales are improving and that it expects to break even this year. But soaring costs have forced many households to tighten their belts, cutting back on discretionary spending.
The chain, which has been forced to close 14 of its pubs since the start of the current financial year, recently cut prices on its steak and curry club deals on Tuesday and Thursday nights in a bid to drum up business.
It also announced last month that it was to give its staff a mass pay rise, taking the hourly earnings of many Wetherspoons staff to above £10. The National Living Wage - the minimum wage for over-23s - rose to £9.50 an hour on April 1st.
