Key facts
- Like-for-like sales rose 8.2% in the 14 weeks to November 1, Wetherspoon said.
- Bar sales rose 9.4% and food sales rose 6.8% over the same period, the company said.
- Wetherspoon said a 10% rise in labor costs adds about 17p to a pub pint versus 1.5p in a supermarket.
- Wetherspoon said pubs have lost half their beer sales to supermarkets since the millennium.
- Analysts forecast profit of £76.4 million for the 53-week financial year, Wetherspoon said.
JD Wetherspoon reported like-for-like sales growth of 8.2% in the 14 weeks to November 1, with bar sales up 9.4% and food sales up 6.8%, according to a trading update attributed to the company.
Chairman Tim Martin used the update to argue that rising employment costs and what the company calls an unfair tax system are making it harder for pubs to compete with supermarkets. Wetherspoon said the labor cost of serving an average £5.34 pint in a pub is about £1.68, against 15p for an equivalent supermarket purchase, so a 10% increase in labor costs adds about 17p to a pub pint and 1.5p in a supermarket.
The company said pubs have lost half their beer sales to supermarkets since the millennium, a trend it said has also cut hospitality jobs. It asked the public, borrowing a line from the Bee Gees, how deep its love for pubs runs. Wetherspoon said it remains confident of meeting market expectations, with analysts forecasting profit of £76.4 million for the 53-week financial year.