Have we passed Peak Wetherspoons?
The pub company JD Wetherspoon recently announced the sale of over 30 of their pubs. Some at least are well used community locals.
Of course Wetherspoons has its detractors. Its founder Tim Martin is a relentless promoter of reactionary views and it’s also not trade union friendly. I’m with its many critics on these points but what is overlooked is that many other pub companies and brewers have similar views and policies. They just don’t shout so loudly about them.
Meanwhile those who have a limited income and like the social context of a pub may find themselves bereft of a Spoons where they can get a keenly priced pint.
Much commentary focused on the fact that Wetherspoons was making a loss and hence had to sell the pubs.
Its recent financial results suggest a different picture. Pre-tax losses fell from a Covid impacted £102.5m to £30.4m. More significantly operating margins fell from 7.3% in 2019 to 1.5%. Wetherspoons has carried over its debts until October 2023, hardly unusual in hospitality currently.
£30.1m was paid out in bonuses and shares to employees, 98.8% below board level. Not the end of the world for those who got the money but not a replacement for a decent pay rise.
Wetherspoons had 951 pubs in 2015. It now has 852 and if the sale of the 32 goes through will have 820 in 2023.
On this basis Peak Wetherspoons has been passed. However as ever there is complexity. Spoons are looking to exit rented premises where costly repairs and maintenance ultimately benefit someone else and focus on its freehold estate.
None of which makes Tim Martin a more pleasant person
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