JD Wetherspoon chairman Tim Martin says his company’s cost are rising by £1.2m a week. “We’re coping, but not everyone will cope,” he says.
In an interview with ITV’s Robert Peston, he admitted that his group had advantages over competitors, such as owning the freehold of many of its sites and having low debt.
“I think a lot of other people haven’t got all those things going for them and may struggle more,” he said.
Meanwhile, Haven Holidays’ chief executive said he would be interested in working closer with Wetherspoon. The pubco has bars on five Haven sites.
Simon Palethorpe told The Sun that Haven customers like brands they know. “They like certainty over what they’ll spend, and Wetherspoon brings that in spades,” he said. “Everybody’s seeing the results we’ve had and we would be keen to go a little bit faster.”
New statistics show accommodation and food services insolvencies were down 11% from 3,829, in the 12 months to February 2024, to 3,405 in the 12 months to February this year.
Less viable brands falling away
Insolvencies in the sector fell 20% to 271 in February, compared to the same month last year. However, they remain historically higher than pre-pandemic levels.
“In recent years, we’ve seen less viable businesses in the hospitality sector either exit the market or undergo restructuring, meaning only the more resilient operators are left,” said Saxon Moseley, partner and head of leisure and hospitality at audit, tax, and consulting firm RSM UK.
“While the industry is still losing a large number of businesses each month, naturally, these numbers should start to fall as less viable brands close up shop.
“Operators are facing significant economic and geopolitical uncertainty, which is weighing heavily on consumer confidence. This, combined with April’s rise in employment costs, means it could be a challenging few months to come.”
He added: “Hospitality trade continues to be particularly weak, as consumers are opting to increase spending on retail rather than dining out. However, with the warmer weather making an appearance and real wages continuing to climb, it’s hoped the sector can enjoy a strong summer of trading to see it through the various headwinds.”
In brief
• Sports events and record Christmas bookings helped Greene King to adjusted operating profit of £198m in the year ending 29th December.
“2024 was a year of transition for Greene King as we shifted our focus from business transformation to delivery and began leveraging our industry leading investment programme,” said chief executive Nick Mackenzie. “Pleasingly, we delivered top-line revenue growth and have grown ahead of the market.”
• Revenue at Young’s rose 25.4% in the year to 31st March, with like-for-like sales up 5.7%. The company says trading for this year is, so far, in line with expectations.
• Revenue at Young’s rose 25.4% in the year to 31st March, with like-for-like sales up 5.7%. The compny says trading for this year is, so far, in line with expectations.
• Turnover halved at brewer SA Brain in the year to December 2024. Pre-tax losses reduced to £137,000 from £22,261,000 in 2023. However, the latter figure included a number of one-off costs.
The company says new product development will continue to play a critical role in the growth of the brewery. It will look to target a new generation of consumers through social media marketing.
• Punch Pubs & Co has acquired four pubs from Everards. The sites are: The Old Kings Head, Long Buckby; The Paget, Loughborough; The Cricketers, Leicester; and the Dog and Gun, Whetstone. Punch says it has an “ambitious vision to grow its estate through quality acquisitions”.
