24 January 2024 , 11:10
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Pub chain Wetherspoon has seen a jump in sales, with an increase of about £1 for every £10 spent in the last six months.
However, the company's boss has warned about rising costs. The firm has also reduced its number of pubs by 12, leaving it with 814, down from 826 at the end of its last financial year.
Sales have risen by 10.1% over the past 25 weeks, according to Wetherspoons. Bar sales increased by 11.8%, food sales went up by 7.9%, and the use of slot and fruit machines rose by 10.4%.
Chairman Sir Tim Martin reiterated his complaint that pubs pay higher value added tax (VAT) than supermarkets. He warned that if staff costs rise, it will likely impact the pub sector more than supermarkets.
He said: "The price of a pint in a supermarket is about £1, so a 10% increase in labour costs (which are around 10 pence per pint) necessitates a one pence increase in the selling price to cover costs. However, for pubs, the average selling price of a pint is around £4.50. The labour per pint is therefore around £1.35 (30% of £4.50), necessitating a 13.5 pence increase in the selling price to cover extra costs.
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He added: "The inevitable consequence is that increased labour costs raise the differential in prices between the hospitality industry and supermarkets. At the same time, pubs pay far higher VAT and business rates than supermarkets, further exacerbating the price disparity."
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