JDW lfl sales up 5.9%, Martin warns of price increases

06-Nov-2024 - Last updated on 06-Nov-2024 at 09:00 GMT

Cost pressures: JDW chairman Tim Martin (pictured) warns of price increases following autumn Budget despite 'record sales'

JD Wetherspoon (JDW) has reported a 5.9% uptick in like-for-like (lfl) sales but warned price increases are on the horizon following the Budget.

The trading update detailed lfl sales in the 14 weeks to Sunday 3 November (Q1) were 5.9% higher than the same period last year.

Bar sales were up by 5.7%, food by 5.7% and slot/fruit machines by 13.5% while hotel room sales decreased by 2%.

In addition, total sales grew by 4.6% in the year to date, attributed to a “small number of pub disposals”. It comes as the pub giant reported total sales soared to £2bn in the FY24.

Increased prices

However, JDW chairman Tim Martin warned despite the “record sales” all pubs would need to consider putting prices up in the coming weeks following the measures announced in the autumn Budget on Wednesday 30 October.

In her first address as Chancellor, Rachel Reeves announced a reduction in business rates relief, an increase to employer National Insurance contributions and a rise in the National Living Wage, receiving backlash from the sector.

Martin said: “The company achieved record sales in the 14-week period and staff retention continues to be at high levels.

“Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the budget.

“All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.”

Reasonable outcome

The trading update also showed JDW opened two pubs in the year to date, in Marlow and at London’s Waterloo Station, with plans to open a total of nine pubs this financial year. Five pubs were sold in the 12-month period, giving rise to a cash inflow of £2.4m.

JDW currently has a total of 797 pubs in its estate, including three Wetherspoon franchises at Hull University student union, which has seen sales double since it became a franchise in January 2022.

The second, at Newcastle University student union, opened in September 2023, and has seen sales increase approximately fourfold in the first year, according to the report.

In addition, the firm said it was “reviewing plans” with Haven to introduce a Wetherspoon to more of its holiday parks in 2025 and beyond after the most recent franchise opening at Haven Primrose Valley Holiday park, Filey, North Yorkshire in March 2024.

Martin added: “The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs.”