Prices at JD Wetherspoon could climb this year to battle soaring labour, food and energy costs, but they will still remain lower than competitors, analysts say. The pub giant is expected to report a 3% drop in sales in the three months to the end of June in its fourth quarter trading update on Wednesday.
Yet analysts say the chain would need to see sales hit double-digit growth to return to 2019 profits and offset higher staff, food, drink and energy costs. Inflation reached 9.1% in May and hospitality companies have been forced to raise prices to stay afloat.
Wetherspoon’s added 10p to the price of its drinks in March and food prices were raised in April when VAT – cut during the pandemic – returned to 20%. But the pub chain is known for its competitive low prices and could benefit from punters opting for cheaper nights out as the cost-of-living crisis bites.
