JD Wetherspoon reviews non-smoking pubs
Wetherspoon today announced a small sales increase for the first eleven weeks of the second quarter, but like for likes are still struggling.
For the first 11 weeks of the second quarter (to 8 January 2006), like-for-like sales increased by 0.3%, compared to a decline of 0.9% in the first quarter but year-to-date (24 weeks to 8 January 2006) like-for-like sales have decreased by 0.3%, with overall Company sales up by 0.9%.
The first 24 weeks saw Wetherspoons open 5 new pubs with a full year target of approximately 15. As the company previously announced, like-for-like sales in the 49 non-smoking pubs had declined by 7.3% and this trend has continued in the subsequent 11 week period. The sales decline comprises lower like-for-like bar sales and fruit machine sales and increased food sales, which has led to a considerable drop in operating margins in these pubs.
The Company intends to review the programme of further non-smoking conversions in time for their interim results announcement on 3 March 2006.In March 2006, all Scottish pubs will become non-smoking, which will affect 38 of Wetherspoon pubs. Combined with the potential impact of the football world cup in June and July 2006, this leads the company to take a cautious view of the possible outcome for the second half of the current financial year.
