Wetherspoon weathers the recession

JD Wetherspoon has recorded a like-for-like sales increase of 1.2% in the 12 months leading up to the end of July this year.

The company, which opened 39 pubs in that time, saw its total revenue grow by 5.2% to £955.1 million.

Despite this, Wetherspoon was not immune to the effects of the downturn, seeing a 16.9% decline in its pre-tax profit as a result of impairment charges on new sites and the disposal of other properties.

Wetherspoon has maintained high footfall as a result of cheap drinks promotions, such as its 99p pints, while the introduction of breakfasts has proved similarly popular, with more than 750,000 sold each week.

As further evidence of the pub chain’s dynamic approach, this Thursday sees the launch of no fewer than 13 new drinks products into its core range.

The new selection includes Lucky, a Chinese lager; Marcle Hill cider, which forms part of the Westons’ portfolio; Buffalo Trace bourbon whisky and, on the wine front, Hardys Private Bin Chardonnay and Shiraz.

Wetherspoon is also adding a 125ml serving option for wine, alongside its 175ml and 250ml glasses.

Tim Martin, chairman of JD Wetherspoon, said: “Our combination of bar, food and coffee sales helps to ensure that pubs are busy throughout much of the week, maximising profits and employment opportunities, as well as generating volume growth for many of our suppliers.”

Looking forward to the year ahead, Martin said: “As a result of our strong cash flow, our dedicated management team and our continuing efforts to improve the business, we remain confident of our future prospects.”

Gabriel Savage, 15.09.09