Wetherspoons profits up despite smoking ban
Pub operator JD Wetherspoon reported a 9 percent increase in first-quarter sales on Thursday, and said its Scottish pubs were trading well.
Wetherspoon's 39 pubs in Scotland increased like-for-like sales by 5.2 percent in the 13 weeks to October 29 , following the smoking ban implemented there in March.
"It may be too early to judge the longer-term impact of non-smoking in Scotland, and conditions may be more testing in the winter months," it said in a statement.
Pubs have dealt with the ban by building shelters for smokers in their gardens and forecourts. But many fear the Scottish winter will prove too harsh for smokers who might shun the pub for a few cans of beer in front of the TV.
Chief Executive John Hutson told Reuters that across the group's pub estate, including Scotland, about two-thirds of venues had outside areas for smokers, "with the notable exception of places like Glasgow, where I don't think anyone has any outside areas".
Total first-quarter sales rose by 9.7 percent to 220.4 million pounds, and like-for-like sales increased by 9.2 percent.
Wetherspoon has banned smoking in 56 pubs in England and Wales ahead of a national ban expected in mid-2007.
Like-for-like sales in those pubs were 11.8 percent higher than in last year's first quarter, and 2.2 percent higher than two years ago, before smoking was banned.
"That demonstrates that after a year or so of adjustment, there are prospects in a non-smoking world," said Hutson.
Source: Reuters, 2 November 2006
Article link: http://tinyurl.com/ukkdt