JD Wetherspoon brings in the punters with 99p beer

Pub chain, JD Wetherspoon, has bucked the trend by reporting a 6.4% increase in like-for-like sales in the last two weeks of trading, compared to a 2.6% rise 12 weeks to 18 January.

The group, which has 714 pubs, has boosted sales by slashing the cost of a pint of beer to less than a pound which has drawn in customers in a climate where people are watching the pennies.

The 99p offer includes Greene King IPA and San Miguel lager but has been criticised amid concerns that it could force traditional pubs to shut their doors or fuel binge drinking.

JD Wetherspoon opened 34 pubs last year and plans to open a further 12 pubs by summer 2009. However, the company said it has decided to “reduce substantially” its spending on opening new pubs.

However, despite the good news, Wetherspoon has cancelled future dividend payments as a result of uncertainty in the credit markets.

Research by the British Beer & Pub Association shows that 1,973 pubs closed last year – a 40% increase on the 1,409 closures the previous year.

According to the organisation, approximately 44,000 jobs in pubs and bars have been lost in the last couple of years and unless action is taken, a further 60,000 jobs will go in the industry.

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