‘Maximum’ 20p increase for Spoons breakfast next year, says Tim Martin
JD Wetherspoon will make sure the price of its breakfast doesn’t rise by more than 20p next year, boss Tim Martin said on Monday.
The confirmation comes despite serious pressure on hospitality from tax hikes and food costs, with warnings of inflation across the sector.
Speaking on LBC radio this morning, Sir Tim Martin told host Nick Ferrari that there would be a “maximum” increase of 20p “across the board” for a Wetherspoons breakfast.
The classic pub fare – a fried egg, bacon, sausages, baked beans, two hash browns and a slice of toast – costs £6.99 in central London, £5.75 in Birmingham New Street and £3.79 in Brentwood Essex.
Martin has previously warned of price hikes at Wetherspoons due to increased costs from higher wages and taxes, with a £60m bill after a hike to national insurance contributions (NICs) earlier this year, although he has vowed to keep inflation to a minimum.
Last year Ferrari posed the same question to Martin and received assurances on the price of the popular fry-up.
Autumn Budget ‘deeply concerning’ for hospitality
While many in the hospitality industry were hoping for tax breaks in the Autumn budget to help the industry get back on its feet, Reeves’ second budget delivered no cuts to VAT and no changes to National Insurance.
Even a cut to business rates has been described as “too little, too little” as well as something likely to get wiped out by an inflation-linked revaluation of rates next year.
“Tinkering with multipliers and reliefs is not reform… only structural change will stop this escalating damage,” HOLBA Chief Executive Ros Morgan said.
A 4.1 per cent increase in the minimum wage will increase the cost of a full-time minimum-wage worker by £900 more annually.
For businesses with 20–30 full-time equivalent staff, such as a café or restaurant, this could result in an additional £20,000 to £30,000 in payroll costs just to maintain the same staffing levels, according to payment provider Dojo.
“Three in ten landlords are scared that they will go bust within a year if costs increase; this Budget will push businesses on the brink over the edge,” Karl Mason, UK Spirits Alliance spokesperson and director of Masons of Yorkshire in North Yorkshire, said.