Wetherspoon sales surge despite ongoing pub disposals
Loose Cannon Take: JD Wetherspoon, the iconic pub chain, is shaking things up and showing no signs of slowing down. They've already sold off seven of their established watering holes since the start of the year, while only opening a measly two new spots. Hey, you can't win 'em all, right?
In a recent trading update, the company spilled the beans on their plans to expand once more, with four to five new pubs on the horizon for the rest of this financial year. If that ain't enough to whet your appetite, they've got another ten lined up for next year. But don't worry, folks, they've got a bevy of irons in the fire to keep the good times rolling.
Now, you might be wondering what's going on with their inventory, and you'd be right to wonder. Their pub count has taken a bit of a dive, dropping from a robust 879 in 2019 to a more modest 800. Well, it would appear that number has dropped even further, down to a somewhat shaky 795.
But fear not, for JD Wetherspoon is reaching for the brass ring. They've snapped up seven freehold reversions since the start of 2025, shelling out £17 million in the process. The goal here is to secure long-term savings on rent payments. Smart move, if you ask me.
On the employee front, the company is investing in some sweet staff facilities. They've already updated 520 pubs with staff rooms, changing rooms, and more, and they aim to add another 270 in the near future. That's quite a commitment, might I add, with each upgrade costing around £100,000 per pub.
So, what's the beef? Well, Wetherspoons has been embroiled in a VAT dispute with HMRC, arguing that cider does not fall under the definition of 'alcoholic beverages.' Unfortunately for them, they didn't win the bid last month, losing a chance to reclaim £4.9 million in taxes. That's a tough break, for sure.
But they're not letting it hold them back. The company expects a "reasonable outcome" for the financial year, despite facing wage and tax increases of around £1.2 million per week. They're also continuing their share buyback program, snatching up more than £41 million of their own shares so far this year.
The icing on the cake? New gourmet burger offerings will be gracing the pub's menus, following trials that have proven extremely popular among patrons. So, if you're a fan of burgers and booze, things are looking pretty sweet for you.
Sources:[1] Wetherspoon sells off pubs despite opening new locations - BBC News[2] JD Wetherspoon incidents - Business Insider[3] JD Wetherspoon annual results 2019 - The Caterer[4] Cider tax debate: JD Wetherspoon loses dispute with HMRC - The Guardian[5] JD Wetherspoon to invest in staff facilities - The Drinks Business
- JD Wetherspoon, the iconic pub chain, is not only maintaining its momentum but also planning to expand, aiming to open four to five new pubs this financial year and another ten in the following year.
- In a bid to secure long-term savings on rent payments, Wetherspoons has purchased seven freehold reversions since the start of 2025, costing them £17 million.
- Although JD Wetherspoon faces wage and tax increases of around £1.2 million per week, they anticipate a "reasonable outcome" for the financial year and are continuing their share buyback program, spending over £41 million on it this year.
- In an attempt to improve employee conditions, Wetherspoon is investing in staff facilities, updating 520 pubs so far and aiming to add another 270 with each upgrade costing approximately £100,000 per pub.
- Despite losing a VAT dispute with HMRC in 2025, denying them the chance to reclaim £4.9 million in taxes, Wetherspoons is offering new gourmet burger options on their menus, following successful trials, to keep their retail business competitive in the food industry.
