Wetherspoon warns over rising costs as sales jump

PUB chain JD Wetherspoon has posted rising first-quarter sales but warned that its costs have risen significantly over the last year.

The bar chain said like-for-like sales rose 6.1% in the 13 weeks to October 29, with total sales growing 4.3%.

But chairman Tim Martin, who was raised in Northern Ireland, pointed to increased labour costs, business rates, utilities and sugar taxes weighing on the firm.

It’s set to open two new pubs in Belfast.

The chain, which has close to 1,000 bars across the UK and Ireland, has also unveiled design plans for its planned pub at Royal Avenue in Belfast City Centre. The company is also planning to turn a former Methodist church on University Road into another pub.

Mr Martin said: “Although it is only a short period, the company has had a positive start to the year. Sales have continued at a slightly higher-than-expected level since we last reported on September 15.

“Costs, as many pub and restaurant companies have indicated, have been significantly higher than last year, and further increases are expected in areas including labour, business rates, utilities and sugar taxes.”

Mr Martin, a staunch Brexit backer, also said the “lowest food prices” can be obtained by the UK by avoiding a transitional deal with the EU.

“This would enable the UK to scrap EU food tariffs, as permitted under World Trade Organisation rules, on food imported from outside the EU. Under WTO rules, tariffs would not then be charged on imports from the EU either,” he said.

His comments come as fears rise that Brexit could lead to a bonfire of food safety standards, with US products such as chlorinated chicken flooding the UK market in place of continental delicacies.