Wetherspoon chief optimistic despite sales struggle

PUB chain JD Wetherspoon is struggling to reach its pre-pandemic sales highs and is selling 35 pubs amid spiralling costs.

Founder and chairman, Tim Martin, said the “biggest threat to the hospitality industry” was “the vast disparity in tax treatment between pubs and restaurants and supermarkets”.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20pc,” he said. “This tax benefit allows supermarkets to subsidise the selling price of beer.”

JD Wetherspoon’s sales rose 17.8pc over the 12 weeks to January 26 compared to last year, but revenue was still 2pc lower than the same period in the lead-up to the pandemic.

Yet Mr Martin said he was “cautiously optimistic” for the months to come.

He pointed to figures from hospitality consultancy CGA which showed it performed better than the wider hospitality industry in December. It operates 844 pubs and has sold 10 and opened two new ones in the last six months.