Pub heavyweight JD Wetherspoon is powering ahead with a significant expansion, having opened a dozen new venues in recent months with the next slated to launch within weeks. The company, which operates almost 800 pubs across the UK, is riding a wave of improved trading, reporting a notable rise in both sales and profits.
Financial Health Fuels Expansion
Recent financial results underscore the chain's robust performance. For the year ending July 27, JD Wetherspoon reported revenues of £2.13 billion, marking a 4.5% increase on the previous year. Crucially, like-for-like sales, which strip out the effect of new openings and closures, grew by an impressive 5.1%.
This growth was driven by both bar and food sales, although hotel room revenue dipped by almost 12% following the decision to withdraw from online booking platforms in the UK. Despite facing substantial cost pressures from wages, national insurance, energy, and new packaging taxes—adding an estimated £60 million to annual costs—chairman Sir Tim Martin has pledged to "keep price increases to a minimum."
A Dozen New Doors Open
The company's expansion drive has seen a flurry of activity since October. The most recent opening was The Angel Inn in Wetherby, which welcomed customers on December 23. This Grade II-listed building, a former coaching inn dating back centuries, had been closed since 2022.
Other recent openings include:
- The Sigered, King of Essex in Basildon (October 21)
- The New Moor Farm in Cramlington (November 5)
- The Hollybush Seam in Bristol (December 3)
- The Red Anchor in Stockton-on-Tees (December 10)
- Coombe Lodge in Croydon (December 17)
This follows four openings earlier in the year in Lincoln, Paddington, Fulham, and Kenilworth.
What's Next for Wetherspoon?
The expansion is far from over. The next confirmed opening is The Chiltern in Beaconsfield, set for January 13. This venue occupies a building that was once a 500-seat cinema, which closed its doors for good in 1989.
In a bold international move, February will see the launch of The Castell de Santa Bàrbera at Alicante-Elche Airport in Spain. Located in the non-Schengen departures area, this pub pays homage to the historic castle overlooking Alicante Bay, targeting the stream of British holidaymakers passing through.
The company stated: "Wetherspoon is opening new pubs across the UK and continues in seeking further sites. Inspired by local history, each pub has its own design, character and personality." The chain is renowned for transforming old, often derelict buildings into vibrant pubs, a strategy that has won it numerous design awards.
Changing Consumer Tastes
Sir Tim Martin provided insight into shifting trends driving sales. He noted a surge in popularity for cocktails and trendy spirits like Au Vodka among younger patrons. Real ale has also made a strong comeback, with volumes challenging pre-pandemic levels, while wine sales have hit a record.
On the food front, poultry dishes are performing strongly, with Korean chicken highlighted as a "big success" over the past year. Breakfast sales have also reached record highs.
By the end of the last financial year, JD Wetherspoon was operating 794 pubs and has plans to open 15 managed and 15 franchised venues in the year ahead, signalling continued confidence in its growth strategy amidst a challenging economic climate.
