JD Wetherspoon
UK pub chain JD Wetherspoon may raise its prices in the months to come. Credit: rawpixel on Unsplash

UK pub chain JD Wetherspoon is considering increasing prices to offset higher staff costs.

As part of a trading update for Q1 2018, the pub chain stated that while it has no immediate plans to increase costs, the issue would be up for review in the coming months.

JD Wetherspoon’s founder and chairman Tim Martin was quoted by The Guardian as saying: “As has been widely reported, unemployment is at a record low, putting upward pressure on wages. As a result, Wetherspoon is increasing the pay of our staff starting from this week.

“Having had several recent years of record profits, we are not immediately seeking to recoup these increased costs through higher pricing or mitigation, but will review that during the year.”

“Everything that can be bought from within the EU can be bought from the 93% of the world outside the EU.”

In Q1 of the fiscal year (FY) 2018, the chain had seen like-for-like sales increase by 5.5% and total sales by 6.2%. For the last three years, the firm had posted record sales and profits, having earned a £107.3m pre-tax profit for sales close to £1.7bn.

The firm previously said that it would require a 4% increase in like-for-like sales to maintain its performance, reported Proactiveinvestors.co.uk.

The firm has also begun replacing EU products with those sourced in either the UK or non-EU locations that have either equal or better quality and price.

He added: “Everything that can be bought from within the protectionist EU club can be bought from the 93% of the world outside the EU if you look hard enough.”

Set up in 1979, JD Wetherspoon operates more than 900 pubs in Britain and Ireland. The value pub chain expects to open between five to ten pubs this fiscal year.