The ex-club doorman offering security to the stars Free 100125
10/01/2025
No Comments
Trending Today
Profits have fallen at UK pub group JD Wetherspoon, as sales were hit by smoking bans and fewer drinks offers.
The group said pre-tax profits after one-offs had fallen 16% to £38.7m for the year to 24 July.
Unfavourable media coverage of binge drinking had hit customer numbers in town and city centres, it said.
In a bid to address the problem, the firm added it had banned two-for-one drink offers and discounts on doubles – a move which reduced drinks sales.
“In the case of spirits, this has resulted in the percentage of double measures reducing from 90% to 50% in the course of the last two years,” Wetherspoon said in a statement.
Wetherspoon added it had also been experiencing “a considerable rise in competition from supermarkets”, off licences and drinks bought abroad as more consumers opted to enjoy a drink at home.
Despite the decline in customers, full year sales rose 3%, or by £22.7m to £809.9.
Smoking bans bite
The number of new openings slowed to 13 from 28 last year – with sales at new pubs offsetting a decline elsewhere, Wetherspoon said, adding that like-for-like sales dipped 0.6%.
Meanwhile, its decision to introduce smoking bans at 36 of its 655 pubs had resulted in a 7% drop in turnover and a decline in profit margins at those pubs.
Critics have claimed that pubs should wait until a ban comes into force, as is widely expected.
But Wetherspoon said: “We feel that it is better to take the initiative, rather than adopting a non-smoking policy at the same time as everyone else, without significant previous experience of its impact.”
However, the company added that the move had led to higher costs – particularly labour costs, as a result of higher food sales at the converted pubs.
Annual operating margins have slipped across the board to 8.7% from 9.9% last year mainly as a result of rising utility, labour and repair costs it added.
In an effort to improve margins, Wetherspoon has been cutting costs at head office and its pub estate.
More tickets for London’s NYE fireworks go on sale More tickets for London’s NYE firewor
Car crashes through front door of Dewsbury pub Car crashes through front door of Dewsbury pub A car
Russia may be responsible for downed Azerbaijani plane, says US Russia may be responsible for downed
