Wetherspoons has announced plans to open up to 25 new pubs over the next year, following a strong start to its financial year. The company has already confirmed six locations across the country.
Currently, the chain operates 797 directly managed pubs and 25 franchised locations. Between five and 10 of the new pubs are expected to be operated directly by Wetherspoon during the year ending in August, while a further 10 to 15 sites will be opened under franchise agreements.
Expansion beyond the UK
In addition to its UK growth, the company is also eyeing expansion at Barcelona Airport, which would give it a second international pub alongside its existing venue in Alicante.
Company chairman Tim Martin said that "the company has had a good start to the financial year." Like-for-like sales across the pub chain increased by 8.2% during the 14 weeks leading up to November 1.
Sales performance and growth drivers
Drinks sales drove much of the growth, climbing 9.4%, while food revenue was up 6.8%. The pace of growth eased towards the end of the reporting period, however. Sales rose by 7.5% in the final five weeks, compared with an 8.6% increase recorded during the preceding nine weeks.
Mr Martin said it was still too early to draw firm conclusions, with around three quarters of the financial year remaining, adding that profitability would largely depend on how sales perform over the coming months.
Confirmed locations and new openings
New pub openings have been proposed for locations in London's West End, Edinburgh, Hessle and West Bromwich, with the West End set to welcome two of the new venues.
Since the start of the new financial year, six company-operated pubs have opened their doors. The latest additions include outlets at Manchester Airport and Heathrow Airport, alongside new venues in Crewe, Cheshire; Ferndown, Dorset; Dibden Purlieu, Hampshire; and Kempston, Bedfordshire.
In the company's latest trading update, Mr Martin criticised government measures that have increased employment costs, arguing they have widened the competitive advantage enjoyed by supermarkets at the expense of pubs. He said the disparity is particularly evident in staffing expenses, with the company's estimates showing that labour adds around £1.68 to the cost of serving a pint in a pub, compared with approximately 15p for a pint sold through a supermarket.
The confirmed locations for new pubs include London's West End, Edinburgh, Hessle and West Bromwich.
