JD Wetherspoon, a pub chain with over 900 outlets, have confirmed that they have plans in action which will hopefully triple their breakfast and coffee sales over the next 18 months. This announcement comes after reports that the chain has witnessed a decrease in operating profits, even though their revenue and like-for-like sales were increasing.
The chain has already established a strong trade when it comes to breakfast and coffee in previous years, selling around 24 million breakfasts a year as well as 50 million coffees and teas. However, they have been witnessing an increase in competition from supermarkets, who, due to the fact that they do not need to pay VAT on food and drinks, are able to offer products at extremely competitive prices. In comparison, all pubs and cafes need to pay 20% VAT on food and drink. The chain has also had to spend more money on higher pay and bonuses for its staff.
From Wednesday 18th March, JD Wetherspoon plans to introduce very competitive prices for its breakfasts and coffees. They will be serving filtered coffee from Lavazza, with free refills, for less than 99p, at about 880 of their pubs. They will also be introducing several other drink offers at the same time. However, the company has warned that due to these new strategies to push the sales of breakfasts and coffees, they are likely to experience an increase in marketing and labour costs during the second half of the year. Nevertheless, they are expecting a more reasonable outcome once the whole financial year can be taken into account.