Wetherspoons pubs warn of price hike for food and drink over 'ferocious' inflation troubles
24 March 2023, 14:06
JD Wetherspoon pubs could face further price rises next year due to "ferocious" inflation rates if sales don't perform.
The popular pub chain says its low prices are at risk after only just recovering its losses from the impact of the pandemic.
Data analysis from earlier this week already shows that a number of Wetherspoon dishes have seen price rises as high as 18%, and now concerns amid inflation rates threaten to push this even higher.
Representatives have said that if sales don't go as planned over the next 18 months, then they'll have no choice but to raise the cost of food and drink further.
Wetherspoons products already impacted by the cost-of-living crisis include its chicken-tikka masala, which with an alcoholic drink, rose 8% from £9.70 to £10.43, and a pint of Guinness, which rose 7% from £2.99 to £3.21.
Read more: What is the UK inflation rate and when will it come down?
Moving forward, the company has modelled a 'base forecast' for the next 18 months, which demonstrate growth at a modest rate and would hopefully mean being able to maintain current prices.
But in its analysis of a 'more cautious scenario', wherein sales are 5% lower than hoped, the chain may have to take action that could lead to a surge in the cost of food and drink.
Wetherspoon's chairman Tim Martin said of the company's current status: "Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic, rather than a consequence of Brexit, as many commentators have argued.
"Inflationary pressures in the pub industry, as many companies have said, have been ferocious, particularly in respect of energy, food and labour.
"The Bank of England, and other authorities, believe that inflation is on the wane, which will certainly be of great benefit, if correct.
"Having experienced a substantial improvement in sales and profits, compared to our most recent financial year, and with a strengthened balance sheet, compared both to last year and to the pre-pandemic period, the company is cautiously optimistic about further progress in the current financial year and in the years ahead."
