(Reuters) – British pub group J D Wetherspoon reported an increase in first-quarter sales on Wednesday, helped by easing costs and steady demand for its lower-than-average priced drinks and food despite the cost-of-living crisis.
The group, which owns and operates 816 pubs across the UK and Ireland, said it would spend about 70 million pounds ($85.90 million) this year to improve its pubs.
Resilient customer spending has helped the UK hospitality industry deal with high costs as it recovers from pandemic lows.
However, the cost-of-living crisis remains a threat as cash-strapped shoppers turn to supermarkets to stock up on beers, wines and spirits.
“Inflationary pressures have eased, but energy costs, in particular, remain at far higher levels than pre-pandemic, putting pressure on suppliers and the wider economy,” Chairman Tim Martin said in a statement.
The group said its like-for-like sales rose 9.5% in the 14 weeks ended Nov.
5, while total sales were up 8.1% so far this year.
($1 = 0.8149 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sonia Cheema and Subhranshu Sahu)
