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Wetherspoon’s destiny ‘at the mercy of politicians’
By Georgie CollinsUK pub chain JD Wetherspoon faces ‘crippling costs’ in the upcoming financial year, with the projected increase in labour-related outlays totalling nearly the entire profit it made last year.

The group, which has an estate of 796 pubs, reported strong trading over the festive season, with like-for-like sales up by 6.1% over the three weeks from 16 December 2024 to 5 January 2025.
Meanwhile in the past 12 weeks, representing Wetherspoon’s financial second quarter (Q2), like-for-like sales growth slowed to 4.6% compared with a year ago, while its like-for-like sales grew by 5.1% in the first 25 weeks of the current financial year.
Despite this, the prospects for the rest of the year look less inspiring, with employers facing increased National Insurance costs and an increase in the National Living Wage.
Wetherspoon chairman Tim Martin said: “From 1 April 2025, labour-related costs at Wetherspoon will increase by around £60 million (US$74.2m) per annum.
“The company is confident of a reasonable outcome for the year, although forecasting is more difficult, given the extent of the increased costs.”
Wetherspoon plans to open nine pubs in the financial year, including sites at London Bridge station, Fulham Broadway underground station, and Manchester Airport, as well as four new franchised pubs at Haven Holiday parks.
Charlie Huggins, manager of the quality shares portfolio at Wealth Club, commented: “Wetherspoon’s sales growth slowed slightly in the second quarter but still remained solid with robust trading over the key Christmas period. Its commitment to low prices and doing the basics well are helping to keep punters loyal.
“However, the extent of cost increases for the sector is crippling. The £60m annual increase in labour-related costs Wetherspoon is facing is almost equivalent to the entire profit it made last year (profit before tax of £73.9m/US$91.4m).
“Price increases are inevitable, but for Wetherspoon, this is a delicate balance. Raise prices too much and it risks ostracising its loyal customer base. Not enough, and margins could come under serious pressure.”
Huggins noted that Wetherspoon “has scale on its side” leaving it better positioned than many in the sector.
“It will flex these muscles as much as it can to contain costs in other areas. But it’s hard to escape the conclusion that, increasingly, its destiny seems out of its own hands and at the mercy of politicians.”
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