Smoking ban affects Wetherspoon’s

JD Wetherspoon posted a 1% decrease in like-for-like sales for the 13 weeks to 28 October. Shares fell 15.5p to 486.5p as the pub chain warned that the smoking ban had affected sales.

The company said that during the period it achieved strong like-for-like food sales growth and a 1.4% increase in total sales.

John Hutson, Chief Executive, said that bar sales have come under pressure, however, the group is seeing growth in products such as wine and real ale, often associated with the purchase of food.

Mr Hutson added that the pub chain remains cautious in its outlook for the financial year due to the uncertainty over the impact of the smoking ban but that it was confident that the implementation of the legislation would be for the long-term benefit of the pub trade.

Wetherspoon’s said that operating costs for the year were in accordance with expectations so far but interest charges were slightly higher.

It said that encouraging growth in food sales had continued after a strong increase in like-for-like sales in the first month after the smoking ban.

JD Wetherspoon has 650 pubs and is renowned for being quiet bars with inexpensive food. The pubs have a standard menu throughout the country and serve a variety of low priced cask ales. Pubs in the chain rarely play background music and generally do not have televisions or sports and news.

In addition, analysts are predicting a fall in profits at Punch Taverns when it announces its results on tomorrow. Furthermore, Regent Inns also said this week that profits at its Walkabout entertainment bars may be affected by the smoking ban and if the England football team fails to qualify for next year’s European Championship.

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