JD Wetherspoon Plc (LSE:JDW) said trade is being affected by older customers remaining cautious and making fewer visits to pubs due to the Coronavirus (COVID-19) pandemic.
The company said like-for-like sales for the first 15 weeks of the current financial year fell 8.9% compared with the same period in pre-pandemic 2019, when sales were at record levels.
But the decline was smaller than in the final 10 weeks of its previous fiscal year to 25 July 2021, when sales dropped 17.8%.
"With no music in Wetherspoon pubs (apart from 46 trading as Lloyds), a material proportion of our trade comes from older customers, some of whom have visited pubs less frequently in recent times,” said Wetherspoon chairman Tim Martin.
The company said there was a considerable increase in sales of the range of drinks often consumed by younger customers in the 15 weeks to 7 November, with cocktails up 45%, vodka up 17% and rum sales 26% higher.
In contrast, draught products, usually preferred by older customers, declined with traditional ales down by 30% and stout down by 20%.
Bar sales fell by 9.6%, food was down by 8.1%, fruit/slot machines declined by 12.3% and hotels were 11.5% lower in the 15-week period.
Sales of breakfasts and coffee fell by 22% and 30% respectively, impacted by more customers working from home.
The group said trade has been positive in the centre of many towns, such as Liverpool, Newcastle Upon Tyne and Oxford where sales rose by 9.1%, 11.1% and 11.3% respectively in the first 15 weeks. In contrast, trade in central London was lower with sales falling 17.4%.
Wetherspoon said it had seen some minor problems due to supply chain disruptions, but overall stocking levels of bar and food products have been in line with previous years.
“The problems have eased in recent weeks, albeit that the busy Christmas period is yet to come,” it said.
The group said labour shortages had affected its pubs in staycation areas in the summer, but described levels of job applications as "reasonable". The number of employees increased from 36,987 when pubs reopened in April 2021 to 42,240 at present.
"Whereas we have an increased element of caution about near-term sales, 'booster' vaccinations and better weather in the spring are likely to have a positive impact in the coming months,” said Martin.