Wetherspoon boss Tim Martin has hit out at cost increases in the hospitality sector as the company's pre-tax profits fell 37%.
Posting its interim results for the 25 weeks up to January 25 2026 this morning, the pub chain revealed a pre-tax profit of £26million, down 37% from £41.3million the previous year.
Operating profit also fell almost 16% from £63million to £53million.
However, like-for-like sales rose 4.8% and revenue was up 5.7% at almost £1.09billion.
Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc, said: "In the last seven weeks, to 15 March 2026, like-for-like sales increased by 2.6%.
"The latest 'CGA RSM Hospitality Business Tracker', for February 2026, said industry like-for-like sales were -0.2%. During this period, Wetherspoon like-for-like sales were +3.2%. This was the 42nd month in a row that Wetherspoon has outperformed the tracker.
"As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60 million per annum, and non-commodity energy costs will add £7 million. The 'Extended Producer Responsibility' tax, a levy on packaging will cost £2.4 million in the current year, an increase of £1.6 million. These cost increases will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.
"There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry. This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged."