Wetherspoon to open 30 new pubs over next year and create 1,800 jobs
Wetherspoon has revealed plans to open up to 30 new pubs in the next year - its highest for a decade.
The move comes after years where the popular chain - along with the wider sector - has been closing sites amid cost pressures and changing customer habits.
The firm, known to many as Spoons, has 794 pubs after opening three in the past year and selling nine. It is a long way below the 955 sites Wetherspoons had in 2015. When it was expanding rapidly it opened 100 pubs in one year - 1997 - including 22 in a single month.
The return to growth comes despite the firm, like others in hospitality, complaining about Labour's hike in employers' national insurance and the national minimum wage.
Pub chains have been faring better than many independent watering holes. The Mirror has been highlighting the plight of local boozers through its Your Pub Needs You campaign.
Wetherspoons founder and chairman Tim Martin told the Mirror: 'We're not throwing our hat in the air yet but are hopeful of better results in spite of challenging regulatory and tax regime.'
On its plans, he said: 'We probably opened some pubs too close to others, which has held us back a bit. We can now concentrate on new openings more. In addition, we have only recently started franchising, which opens up locations such as universities and holiday parks where we've been unrepresented.'
Around half the 30 new pubs planned for the coming year will be managed by Wetherspoons itself, the other half will be run by franchisees. They are expected to create around 1,800 jobs in total.
A recent example was one of Wetherspoons largest ever pubs that has opened at a Haven holiday park in Devon. The pub can pack in nearly 700 punters, and is expected to serve as many as 2,000 pints a day.
Asked what his message would be to Chancellor Rachel Reeves ahead of the autumn Budget, Mr Martin said: 'We live in a world of polarised politics. Try and steer a pre-economics, middle path.'
Mr Martin said its sales, by volume, were only recently back above pre-pandemic levels. Takings rose just over 5% in the three months to July 20, boosted by the hot weather and punters flocking to beer gardens.
Richard Hunter, head of markets at online firm Interactive Investor, said: 'This was achieved despite the challenges arising from the Budget measures, where the group previously reported rather morosely that increases in labour rates and national insurance would add some £60million per year to its costs, equivalent to £1,500 per pub, per week.'
Full year profits - to be released in early October - are expected to be in with City forecasts, the firm said. Mr Martin singled out a number of successes in a trading update. Sales of Villa Maria New Zealand wine and Prosecco from Italy were both 'shooting the lights out', he said, with demand for Irish stout Guinness also continuing to strong.
He went on: 'On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead. Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels.'
Julie Palmer, partner at business advisory firm Begbies Traynor, said: 'With estimates that many pubs are at risk of being lost this year, Wetherspoon's scale and financial discipline will insulate it from the pressures that are pushing independent operators to close their doors.
'As such, we may be heading towards a world where pubs have to deliver a strong gastro, unique after-work captive audience offering or become a well-run giant like Spoons.'
Mr Hunter at Interactive Investor added: 'Wetherspoon has fought its corner for many years and has overcome some serious hurdles, but the outlook for the wider domestic economy and the higher levels of staff costs continue to weigh heavily.'
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