Wetherspoons Faces Rising Costs, Plans Expansion

J.D. Wetherspoon is facing a significant increase in labor-related costs, estimated at £60 million annually, due to government-mandated tax and wage hikes. Despite these challenges, the company has announced robust sales growth of 5.1% in the 25 weeks to January 19, driven by strong food and drink demand. The pub chain plans to open 13 new locations, including sites at London railway stations and Haven holiday parks, expanding its footprint to over 800 pubs. Chairman Tim Martin has called for tax reforms to level the playing field between pubs and supermarkets, highlighting the VAT disparity that favors supermarkets. While the company remains confident about the year's outcome, it acknowledges the difficulty in financial forecasting amidst rising costs. Wetherspoon's plan to open new pubs indicates a strategic move to leverage its scale and maintain growth despite economic pressures.