JD Wetherspoon Plc (LSE:JDW)’s boss Tim Martin has said the UK is heading for a new “lockdown by stealth” as he warned the latest government restrictions would hit its business.
A vocal critic of the restrictions imposed on the hospitality sector due to the Covid crisis, Martin said the implementation of Plan B would ‘affect our first-half results, in particular, which may be loss-making or marginally profitable’.
In a trading update in November, Wetherspoon’s said customers, especially older ones, were "understandably cautious" and that improvements in trade would depend on "the outlook for the virus".
Plan B, which involves additional restrictions, including advice to work from home has negative implications for pubs and restaurants, he said.
“The uncertainty, and the introduction of radical changes of direction by the Government, make predictions for sales and profits hazardous.”
Martin added: "As previously reported, there have been no outbreaks, as defined by the health authorities, of Covid-19 among customers in Wetherspoon pubs
"However, the repeated warnings and calls for restrictions, mainly from SAGE members and academics, combined with arbitrary changes of direction from the Government, invariably at short notice, affect customer sentiment and trade.
"In effect, the country appears to be heading towards a lockdown by stealth.”
Martin’s comments echo gloomy predictions from other pub groups.
Clive Watson, executive chairman of City Pub Group, last week warned that some pubs might run out of cash unless there was more support from the government.
“What government has got to appreciate is for businesses, particularly in our sector, Christmas is always a key time," he told the BBC.
Watson said his chain of 44 pubs makes a third of its annual profits in December, which offsets the quieter months of January and February.
Shares in Wetherspoons fell 3.6% to 836p while City Pub was unchanged at 97p.