JD Wetherspoon's Remarkable 10% Rise in Sales
Posted by Emma on 26th Jan 2024
In the latest financial review, JD Wetherspoon has demonstrated a notable performance, reporting a 10.1% increase in like-for-like sales over a 25-week period ending on January 21, 2024. This growth is compared to the same timeframe in the previous year.
Anthony Shaw, PDM-owner, via Wikimedia Commons
Breaking down the numbers, bar sales have seen an 11.8% rise, food sales have grown by 7.9%, and slot/fruit machine revenue has increased by 10.4%. Additionally, room sales have experienced a 3.1% increase.
The past 12 weeks have been solid, with like-for-like sales rising by 11.1% over the same period last year. Overall, total sales have expanded by 8.4% in the current year.
According to the Coffer CGA Business Tracker, the industry's average like-for-like sales increase in December was 8.8%. In contrast, Wetherspoon's reported a 15.2% increase for the same month, marking its 16th consecutive month of outperforming the tracker.
Wetherspoon operates 814 pubs, including new openings at London's Heathrow Airport and Euston Railway Station. The report period also saw the sale of five pubs and the surrender or subletting of eight leasehold pubs, resulting in a £3.8 million cash inflow.
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Richard Rogerson / The Assembly Rooms, Epsom
Chairman Tim Martin commented on the industry's recovery post-pandemic, stating, "Wetherspoon, like the hospitality industry, has seen a consistent but slow recovery, following the pandemic." He highlighted the challenges faced by the pub sector, especially in comparison to retail. Notably, pub labour costs stand at around 30% of sales, compared to 10% for supermarkets. This difference, coupled with higher VAT and business rates for pubs, exacerbates the price disparity between the hospitality industry and supermarkets.
Looking ahead, Martin remains optimistic, expecting the company's financial outcome to align with market expectations for the year.
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Cover Image Source: Mutney, CC0, via Wikimedia Commons
