October 7th 2024.
JD Wetherspoons recently announced its plans to open 200 new pubs in the near future, expressing optimism for the growth of the popular chain. However, along with this update, the company also revealed that 26 of its pubs across the country have been shut down since July 2023, following a few closures the year before.
In its latest update, Wetherspoons reported that five of its sites are currently at risk of closure as they are either up for sale or under offer. While the chain has enjoyed a sales growth of nearly 8% in the past 12 months leading up to July this year, it has also sold or surrendered the lease on several of its pubs.
It should be noted that the pubs currently under offer are not guaranteed to be sold and could potentially remain open if the sale falls through. However, if the sale is successful, these pubs will likely be closed in the coming months and either repurposed or reopened under different management.
The Wetherspoon pubs currently under offer include the Hain Line in St Ives, Sir Daniel Arms in Swindon, Foot of the Walk in Leith, and Quay in Poole. Additionally, one Wetherspoons pub, Ivor Davies in Cardiff, is currently on the market.
Wetherspoons regularly reviews which branches are up for sale and sometimes decides to keep them operating as Spoons pubs. The company has previously stated that most of the recent closures were of smaller and older venues, or locations where they have another pub nearby.
Despite the closures, the number of Wetherspoons pubs in the UK has only fallen by around 150 in the past decade. JD Wetherspoon boss Sir Tim Martin has trimmed down the roster of pubs from 950 a decade ago to around 800 today. In the company's latest trading update, Tim Martin stated: "The gradual recovery in sales and profits, following the pandemic, has continued in the current financial year. Total sales are, again, at record levels, with fewer pubs."
Wetherspoons has long been known for its affordable prices for beer and food, with the pub chain refusing to increase the cost of its popular £5.75 breakfast. However, the business did take a hit during the cost-of-living crisis, leading to the closure of several pubs.
While dozens of Wetherspoons have shut down, Martin remains hopeful and has stated that the chain plans to open new branches as inflation eases. They are currently eyeing up sites in 130 towns and cities, with several new pubs already opening in the last 12 months.
Furthermore, a number of existing sites have been expanded, including the Red Lion in Skegness, the Talk of the Town in Paignton, the Albany Palace in Trowbridge, and the Mile Castle in Newcastle. Martin believes that people are still willing to go out for a pint if the prices remain competitive, stating in an interview with The Guardian: "People are happy to go out for a pint if you keep the price competitive. It's not like buying a sofa."
Despite the loss of several pubs, Wetherspoons has reported continued sales growth and has no plans to increase prices this year. Additionally, the company has increased the number of freehold pubs they own, from 41% in 2010 to 71% currently. Their goal, as stated in their financial report in March, is to eventually reach 1,000 pubs. The report also noted that despite the reduction in the overall number of pubs, sales have continued to increase, with total sales now one-third higher than in 2015 and sales per pub increasing by 50% since then.
In conclusion, while there have been recent closures and some pubs are at risk of closure, JD Wetherspoons remains a popular and successful chain. With plans to open new branches and continued sales growth, the company is optimistic about its future. This article was originally published on September 16, 2024, and has been updated to reflect the latest information.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
