Wetherspoons CEO Warns of Price Increases

Tim Martin, CEO of Wetherspoons, has expressed confidence in achieving a 'reasonable outcome for the year' amidst concerns of imminent price increases in the hospitality sector following Labour's Autumn Budget. The pub chain reported a 5.9% rise in like-for-like sales and a significant 13.5% increase in revenue from slot machines for the quarter ending 3 November. However, Martin warned that a projected £60 million rise in taxes, driven by a 67% increase in National Insurance contributions, would compel Wetherspoons and other hospitality businesses to raise prices. The British Beer and Pub Association has cautioned of a 'tsunami' of costs, predicting a £310 million increase for the industry. Despite these challenges, the budget also introduced a 1.75% reduction in beer and cider duty for draught products. Wetherspoons' shares have decreased by over 20% this year, and the company has sold five pub locations in 2024, generating £2.4 million in cash inflow.