Wetherspoon boss Tim Martin says closing pubs ‘over the top’
Tim Martin, the owner of UK pub group J.D. Wetherspoon, has said closing sites to stop coronavirus from spreading would be “over the top” as the company reported that sales are starting to slip.
Prime Minister Boris Johnson called for people to practice strict social distancing measures on Monday (16 March), and gave “strong advice” to avoid public venues such as pubs, bars, restaurants and theatres.
The policy has seen venues deserted throughout the week, badly affecting sales, while many have resorted to offering takeaway and delivery services in order to stay afloat.
Now Martin predicts that Wetherspoon’s profits will be below expectations this year, and has already seen a dip in sales since Monday.
Wetherspoon’s like-for-like sales had increased by 3.2% in the six weeks to 8 March, and total sales by 2.9%.
But in the following week, to 15 March, sales fell by 4.5%.
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Martin added that at the start of this week, following the Prime Minister’s advice to avoid pubs, sales have declined “at a significantly higher rate.”
As a result, the company will delay “most capital projects to reduce expenditure:, which includes cancelling its interim dividend.
Martin said this, combined with the Government’s proposals on business rates relief and credit guarantee facilities, will give the pub group “sufficient liquidity to maintain operations at a substantially lower level of sales.”
Tim Martin’s pub group had performed well last year, even in spite of a tough high street market and economic uncertainty caused by UK’s divorce from the European Union. Operating profit rose by 20.6% to £76.6 million in the year to 26 January.
“It is obviously very difficult to predict, in these circumstances, how events will unfold in future weeks and months,” Martin said, “but we now anticipate profits being below market expectations, so long as the current health scare continues. As a result of this uncertainty, it is impossible to provide realistic guidance on our performance in the remainder of the financial year.”
I am afraid what Mr Martin says suggests he is putting profits before people, both customers and staff! He should be adopting a responsible and supportive approach to the governments guidelines rather than seeking to rubbish them. If we do not all follow the best scientific advice available that is clear that social distancing and self-isolation are vital, we will lose more people prematurely and risk overwhelming our hard pressed NHS