The pub titans revealed their interim report with one big announcement hidden among their worrying figures.
Stats for the 26 weeks to January 25 this year detail JD Wetherspoon’s pre-tax profits slipped 31.9% despite sales increasing by 4.8%.
Revenues increased by 5.7% from £1.29 billion in 2025 to £1.87 billion but operating profit was down 18.4% to £52.9 million.
Despite this, the report claims they plan to establish 15 new ‘managed’ pubs in the current financial year.
They also aim to open a further 15 to 20 franchised pubs in the same timeframe, bringing the total number of new premises to a possible 35.
JD Wetherspoon currently manages 794 pubs and has 16 franchise locations but they had 85 more pubs in the pre-covid 2019 financial year.
The report notes the costs of energy (+80.0%) and wages (+61.1%) have all risen faster than sales in the reported period.
Tim Martin blames the hospitality industry’s higher taxes, wages and energy costs for profits being ‘slightly below current market expectations’.
Tim said: “As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60 million per annum, and non-commodity energy costs will add £7 million.
“The ‘Extended Producer Responsibility’ tax, a levy on packaging will cost £2.4 million in the current year, an increase of £1.6 million.
“These cost increases will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.
“There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry.
“This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged.”
