Budget British pub chain JD Wetherspoon has announced price rises of an average of 3% on its food and drink products amid rising costs, despite posting an overall 10.1% rise in sales in compared to the previous year in its most recent report.
The company, owned by Sir Tim Martin, issued a statement confirming increases in the cost of food and drink at its 814 sites across the UK.
The statement says the average price increase is 3%, but the average price increase is 3.95%.
However, it also confirmed lower increases on some products, for example a 2% increase on beers such as Bud Light and Doom Bar.
Sir Tim attributed the product increases to rising operating costs, having previously noted labor costs in the hospitality industry.
Much-loved British pub chain JD Wetherspoon has announced price increases across its menu of an average of 3%.
He explained that labor costs in pubs represented around 30% of sales, while in retail labor costs represented around 10% of sales.
The catering reports that the owner of JD Wetherspoon used its January trading update to draw attention to difficult trading conditions in the hospitality sector, despite like-for-like sales rising 10% on the previous year.
‘The inevitable consequence is that the increase in labor costs increases the price differential between the hospitality industry and supermarkets. At the same time, pubs pay much higher VAT and trade rates than supermarkets, further exacerbating the price disparity,” he said.
Referring to food and drink price rises at the pub chain, he said: ‘Wetherspoon, like most pub businesses, has seen big increases in costs. We believe our prices remain competitive even after these changes.’
The increases come after Tim Martin cut food and drink prices across the pub chain’s 814 sites in January, meaning punters could buy a pint of Doom Bar for just £1 .99.
Meanwhile, cocktails including a strawberry daquiri, margarita and espresso martini were just £2.99.
The January sale, which ran from January 2 to 17, also saw the price of food and soft drinks reduced, with coffee, hot chocolate and tea costing £1.29, including free refills.
Meanwhile, the small breakfast plate with bacon, sausage, fried egg, beans and toast was just £1.99 and a burger and soft drink just under a fiver.
Last month, fans of the cheap pub chain criticized its three small course meal deal once retailed for £10 as it rose to almost double the price in some UK venues.
A Wetherspoons customer posted a photo on Manchester branch.
Elsewhere, such as Holborn in central London, prices are even higher: £18.09 for three small plates.
According to the Office for National Statistics, the price of food and non-alcoholic drinks increased by approximately 21 per cent between November 2021 and November 2023. It is a staggering statistic compared to the decade between 2011 and 2021, during which Prices increased by 10 percent. percent.