Wetherspoon boss Tim Martin issues warning over ‘substantial’ cost increases despite rising sales
Pub giant JD Wetherspoon has warned its profits are likely to fall short of market expectations, attributing the potential shortfall to a significant increase in operating costs.
Chairman and founder Tim Martin stated that the group had experienced “significant increases in costs” and predicted that this would result in “profits slightly below market expectations”.
The warning came as the company also revealed that sales growth was slowing.
Wetherspoon has previously highlighted that increased National Insurance contributions and charges are estimated to cost the business around £60 million a year, with an additional £1.6 million in duty coming this year from the Extended Producer Responsibility packaging levy.
Despite these financial pressures, the pub chain reported a 3.4 per cent year-on-year increase in like-for-like sales for the 13 weeks ending April 2026.
Comparable sales rose 4.8 percent in the six months to the end of January.
This means like-for-like sales are up 4.3 per cent since the start of the financial year, with total sales up 4.9 per cent in the period.
Wetherspoons said it opened eight more bars in the last quarter, but total bar space remained stable after closing all eight.
Mr Martin said: “The company has a strong pipeline of new pubs and planned openings include Manchester Airport, Heathrow Airport, Paddington station, Charing Cross station and Shaftesbury Ave in central London.”
Dan Lane, chief analyst at Robinhood UK, said: “Wetherspoon bars are doing their bit but it is becoming a familiar story of costs (particularly labor and taxes) absorbing this growth.
“Sales are continuing as the company’s value proposition attracts customers in a still-tense consumer environment.
“But with cheap pints driving people through the door, management is clearly reluctant to meaningfully increase pricing, meaning there is little sign of margin relief ahead.”
The latest trading performance comes as the British pub chain launches its first mainland European establishment at Alicante airport in Spain.
Castell de Santa Barbera is located in the departure area and aims to give UK holidaymakers a taste of Britain before returning home.
Trading from 6am to 9pm seven days a week, the venue serves popular local dishes such as garlic prawns and Spanish omelettes, as well as traditional pub fare including English fries and burgers.
