JD Wetherspoon PLC (LSE:JDW) boss Tim Martin has predicted widespread price rises across the entire hospitality sector in response to Labour’s Autumn Budget.
In a trading update covering the 14 weeks to 3 November, Martin stated: "Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the Budget.
"All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.”
Wetherspoon forecasts that annual taxes and business costs will increase by around £60 million, including a dramatic 67% increase in National Insurance Contributions.
The industry immediately called out Labour Chancellor Rachel Reeves’ high-tax Budget, with trade body UKHospitality calling it “the latest blow for hospitality businesses”.
Despite the spectre of pricier food and drink, Wetherspoon achieved record sales in the period, with bar sales and food both increasing by 5.7%.
Punters contributed greatly to the record period, with the take on slots and fruit machines surging by 13.5%.
Hotel room sales were down by 2%.
Martin added that Wetherspoon is “confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs.”