JD Wetherspoon chief warns that the price of a pint could go up if the bargain-pub chain spins the costs
- The founder of Wetherspoon warned that the cost of the café chain will rise this year
- He said that this can have a knock-on effect on the price of drinks in the pub chain
- Sales slowed in the summer as its rivals benefited from the World Cup and the warm weather, but profits rose to record levels
Emily Hardy because this is money
The founder and chairman of JD Wetherspoon, Tim Martin, tempered this Friday with a warning that the costs in the 900-strong pub chain would rise this year.
The leading campaigner left the BBC that a projected increase in labor costs, interest payments and taxes could have a knock-on effect on the beer pump. The price of food and drinks can go up a little bit, he said.
Martin's warning came out when Wetherspoon revealed record profits – an increase of 4.3 per £ 107.2 million in its last fiscal year.
There are about 900 Wetherspoon pubs in the UK, but Martin warned that the expansion could slow down
But like-for-like sales growth of 5 percent was slower than the 5.2 percent it recorded in the first nine months of the year and at the lower end of analysts' expectations.
The budget cafe chain did not enjoy the same boost of the World Cup as some of its rivals, because it keeps the prices low by limiting the expenses on extras such as music and television sports.
Shares in Greene King rose 11 percent last week after a sales increase on the back of the tournament.
Selling at the bottom of expectations should not come as a surprise, said AJ Bell investment director Russ Mold.
& # 39; Wetherspoon rarely shows live sports outside major events such as the World Cup, so it is not an obvious destination for people who want to follow the Three Lions.
& # 39; And relatively few of its buildings have much of a beer garden, making it a less attractive location to enjoy a drink while enjoying a drink, & # 39; he explained.
Mold said & # 39; it would be wrong & # 39; to encounter too many short-term factors because the business model continues to deliver & # 39 ;.
But he warned that rising costs will make it difficult for the company to deliver a repeat performance.
Martin also said that today he was hoping for a & # 39; no deal & # 39; Brexit.
Wetherspoon founder and chairman Tim Martin (above) is a prominent campaigner
& # 39;A deal is a bad thing – if we do not have a deal and embrace free trade, prices will fall in stores. We will be in a much stronger position on a free trade basis that some people call a no deal, "he said.
In June of this year, the company said it would replace EU-made products such as Champagne with alternatives from the UK and countries outside the block.
Martin said last week that Wetherspoon no longer serves Jagermeister, but also French brandies Courvoisier VS and Hennessy Fine de Cognac.
The shares were traded in the morning at £ 12.79 in the morning, valuing the company at around £ 1.3 billion.