Wetherspoon slams ‘baffling’ Covid-19 restrictions as sales slump
JD Wetherspoon boss Tim Martin this morning slammed “baffling” coronavirus rules, as the pub chain reported a sharp drop in sales due to tightening restrictions.
The company, which also revealed it had accepted a £48.3m government-backed loan during the crisis, said sales in the 15 weeks to 8 November plunged 27.6 per cent.
Sales had been hit by changes in the tier categories, the 10pm curfew, the requirement to order all food and drink at the table, and the mandatory use of face masks when moving around inside pubs, Wetherspoon said.
Cash burn during the month-long coronavirus lockdown in England is estimated to be around £14m.
Wetherspoon’s 756 pubs in England, Northern Ireland and the Republic of Ireland are currently closed, while its 64 Scottish pubs and 51 venues in Wales are still trading.
The company raised £137.7m through a share placing in April and £48.3m through the coronavirus large business interruption loan scheme in August. As of 25 October, Wetherspoon had £234m of liquidity.
Chairman Tim Martin said the changing regulations were “baffling and confusing” for both customers and businesses across the country.
“The entire regulatory situation is a complete muddle,” he said.
“However, the initial regulations, following reopening, introduced on 4 July, were carefully thought through, followed thorough consultation, and were based on solid scientific foundations of social distancing and hygiene,” Martin added.
“The benefits of the regulatory hyperactivity since then, including the imposition of a curfew, are questionable.
“A particular anxiety in the hospitality industry relates to the future timescale for the ending of “temporary” regulations.
“Veterans of the industry will recall that the afternoon closing of pubs between about 3pm and 6pm was imposed in the First World War, to encourage munitions workers to return to their factories – but the requirement for afternoon closing was only abolished in 1986.”