Wetherspoons fans set for another price hike as meal deals get more expensive
JD Wetherspoon has warned that “ferocious” inflation has hit its business as the price of their beloved burger and a pint meal rose last month.
And the business has said there could be further price rises if sales are not as good as hoped over the next 18 months.
It comes despite the pub chain posting a small profit, even as sales continued to lag behind pre-pandemic levels.
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Like-for-like sales were up 13% compared to the same period last year and up 5% versus pre-pandemic levels.
Chairman Tim Martin has said he looks forward to "ferocious" inflationary pressures easing up across the pub industry.
However, punters in one Surrey Wetherspoons were forced to fork out 8% more, from £9.85 to £10.59 last month, for the 'Ultimate Burger' deal with an alcoholic drink.
The cost of its chicken tikka masala meal with an alcoholic drink has also reportedly risen from £9.70 to £10.43, while even tea and coffee rose from £1.35 to £1.45.
A pint of Guinness also went up from £2.99 to £3.21 (up 7%).
The business, which has been heavily exposed to rising costs for energy, food and labour, said its pre-tax profit shrank by more than 90% to £4.6 million in the first half, from £50 million in 2019.
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The pub chain reported a 5% increase in sales over the six months to January 29, compared to the same period in 2019, and up 13% compared to the previous year, according to Hull Live.
Nevertheless, it means it returned to profit after suffering a loss amid the pandemic.
Tim Martin, Wetherspoon’s chairman, said: “Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic, rather than a consequence of Brexit, as many commentators have argued.
“Inflationary pressures in the pub industry, as many companies have said, have been ferocious, particularly in respect of energy, food and labour. The Bank of England, and other authorities, believe that inflation is on the wane, which will certainly be of great benefit, if correct.
“Having experienced a substantial improvement in sales and profits, compared to our most recent financial year, and with a strengthened balance sheet, compared both to last year and to the pre-pandemic period, the company is cautiously optimistic about further progress in the current financial year and in the years ahead.”
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