subject: Jd Wetherspoon Maintain Unbroken Record Of Growth In Fy Sales And Profits [print this page] Despite the continued success of his business Tim Martin, founder and chairman of J D Wetherspoon plc, has been lobbying for the pub industry to pay VAT in line with supermarkets on food (zero rated vs 20%) saying that it distorts competition unfairly.
In pointing out the continued growth of supermarkets and the ongoing closures of pubs, Tim Martin, said:
"As previously indicated, the biggest dangers to the pub industry, are the VAT disparity between supermarkets and pubs, combined with the continuing imposition of stealth taxes, such as the late-night levy and the increase in fruit/slot machine taxes."
Tim has a point, but he wants to ignore the costs of selling intoxicating beverages to the NHS, police etc, which much of this stealth taxation is designed to recover. What most police and councils are reluctant to do is use powers which they already have to limit the ability of off-licences to sell cheap strong alcohol in city centres particularly at night, to redress the balance.
When the police or councils try to use their powers Tesco or some other operator of convenience stores with deep pockets, forks out for a top brief, and the local magistrates are often star struck. Curbing the power of the retailers is a tough nut to crack.
How hard is it to make money when you can simply raise your selling prices like this? The paradise that all of the housebuilders find themselves in is that there is so much competition for their product, within the constraints of the mortgage supply available, that as long as they ration the supply they can't help but make money and sell all they build.
JDW has benefitted from the changes in culture by leading the way not only with food, but also tea and coffee throughout the day.And whoever would have thought of going to a pub for breakfast 20 years ago?
The night time economy must be profitable as JDW has the option of closing at 11pm rather than paying a late-night levy, so voting with his wallet Tim chooses to open, and his main challenge is cleaning up his bar so that the breakfast punters aren't skidding on the remnants of the party. But then as a barrister turned publican Tim is also a top brief, and I'm sure he doesn't regret switching bars.
