JD Wetherspoon might increase its costs within the coming months because the pub chain warned of weaker buying and selling, greater workers prices and mentioned its founder and chairman, Tim Martin, could be working half time for a number of weeks as he recovers from a burst appendix.
In a buying and selling replace for its first quarter, the pubs agency mentioned that whereas it will not instantly cross on the next wage invoice to clients by way of worth rises, it was beneath assessment.
Shares within the group fell 10% because it additionally warned that buying and selling within the full yr was more likely to be weaker than the earlier yr. Martin mentioned: “As has been extensively reported, unemployment is at a file low, placing upward stress on wages. Consequently, Wetherspoon is growing the pay of our workers ranging from this week.
“Having had a number of current years of file earnings, we’re not instantly looking for to recoup these elevated prices by way of greater pricing or ‘mitigation’, however will assessment that through the yr.”
Martin, the general public face of Wetherspoon and a vocal Brexit supporter, mentioned he could be working part-time whereas he recovered from his operation.
“I’m at present recovering from an operation after a burst appendix, so intend working half time from dwelling for a number of weeks. Many because of the unbelievable medical doctors, nurses and workers on the Royal Devon and Exeter hospital.
“As most individuals perceive, an skilled board, as at Wetherspoon, is usually a nice benefit. My current well being scare emphasises this level.”
Within the 13 weeks to 28 October – the agency’s first quarter – gross sales at pubs open for greater than a yr elevated by 5.5%, with whole gross sales rising by 6.2%.
Martin added: “It’s tough to be too exact at this early stage of the present monetary yr, however we now count on a buying and selling end result barely under that achieved within the earlier monetary yr. We are going to present additional updates on our buying and selling as we progress by way of the yr.”
The Wetherspoon boss mentioned it had already began swapping merchandise imported from different EU international locations, comparable to Jägermeister, Courvoisier and German beer, for UK or non-EU variations “of equal or higher high quality and worth”.
“The whole lot that may be purchased from inside the protectionist EU membership could be purchased from the 93% of the world exterior the EU – in case you look arduous sufficient,” he mentioned.