Pub chain JD Wetherspoon has revealed that it is facing slowing sales and “substantially higher” costs.
The firm said costs for labour, food, and repairs were much higher in its first quarter, as it admitted that October had been a slow month for trading, Wales Online reports.
The business said that like-for-like sales dropped 1.1% in the five weeks to November 6 when compared with pre-pandemic trading in 2019, having risen by 1.5% in the previous nine weeks. Compared with a year ago, the chain said sales rose 10.1% in the first nine weeks of its financial year and were 8.9% higher in the past five weeks.
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“Costs, especially in respect of labour, food and repairs, were substantially higher” in its first quarter, the group said.
Despite this, Wetherspoon said trading was “broadly” in line with its expectations, with chairman Tim Martin saying the firm remains “cautiously optimistic” despite the cost pressures hammering the hospitality sector.
He said he previously set out “various threats to the hospitality industry and these continue to apply."
Mr Martin said: “Those caveats aside, in the absence of further lockdowns or restrictions, the company remains cautiously optimistic about future prospects.”
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