JD Wetherspoon Urges Tax Cuts for Pub Food Amid Rising Costs and Sales
JD Wetherspoon is pushing for tax cuts on pub food as costs rise, despite reporting stronger sales in recent months
JD Wetherspoon, UK, Pub Food, Tax Cuts, Sales
London: So, JD Wetherspoon is making some noise about tax cuts for pub food. They’ve been doing pretty well lately, even though they’ve sold off a few pubs. It’s a bit of a mixed bag.
Chairman Tim Martin mentioned they’re facing a hefty £60 million increase in labor costs soon. That’s due to higher national insurance and minimum wage hikes. He thinks they’re in an okay spot, but it’s tough to predict what’s next with all these tax and wage changes coming up.
He’s really pushing for a fairer tax system, saying pubs and restaurants should pay the same VAT on food as supermarkets do. Right now, supermarkets have zero VAT on most food, while pubs are stuck with a 20% rate. That’s a big difference!
Martin argues that this tax break lets supermarkets sell beer cheaper, which isn’t fair to pubs. He’s calling on Sir Keir Starmer to help fix this and level the playing field. He wants to see fewer boring dinner parties and more lively pub gatherings.
Despite the challenges, Wetherspoon has seen a nice bump in sales recently. They reported a 5.1% increase in like-for-like sales over the last 25 weeks compared to last year. Food sales were up 5.6%, which is great, but they did see a drop in hotel room sales.
Sales even picked up around Christmas, with a 6.1% rise during the holiday season. But it’s worth noting that their growth wasn’t as strong as some of their competitors like Marston’s and Young’s.
After selling off six locations, Wetherspoon now has 796 pubs and has opened a couple of new ones. Julie Palmer from Begbies Traynor pointed out that while they had a solid run in 2024, the recent Christmas performance wasn’t as impressive as expected, hinting at some uncertainty ahead.