Wetherspoons punters face price hike as boss Sir Tim Martin warns of £60m blow from Chancellor
WETHERSPOONS boss Sir Tim Martin has warned of price rises in his pubs — as they face £60million extra costs from the Chancellor.
The chain’s founder and chairman said the hike in employers’ national insurance contributions and wages had increased costs by £1,500 per pub.
Sir Tim said the Budget would “exacerbate the already wide price differential for customers” between pubs and buying cheaper drinks in supermarkets.
He warned labour costs were 35 per cent of the pub industry’s sales — compared to 11 per cent for supermarkets.
The Spoons boss regularly calls for pub VAT to be reduced.
And his company revealed its half-year operating profits had slid from £67.7million to £64.8million — rocked by a £31million increase in labour and energy costs.
It paid £410million in tax in the last six months — with VAT being the biggest contributor at £199million.
Sir Tim said he expected a “reasonable outcome” for the rest of the year — with like-for-like sales up 5 per cent.
Wetherspoons boosted its dividend — but its shares still dropped by 7.45 per cent to 552.50.
Hargreaves Lansdown’s Derren Nathan said: “News that operating profits fell shows how much of a challenge rising labour costs are.
“With NI and minimum wage age increases around the corner, the industry’s bracing for another hit.”
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