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Wetherspoons Profits Down As Its Forced To Write Down Value Of Property

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You just wonder whether the service sector can be profitable going forward. Wetherspoons has slashed the cost of a pub meal to levels that were prevalent when I started work over 35 years ago, in what is becoming the great service sector deflation. They can only really meet this deflation by being mega efficient and screwing suppliers down to the bone, who in turn become buggered.

Meanwhile the staff are helping themselves to what is left of these companies in other ways (beyond the living wage issue).....on another thread it was pointed out that six FTSE 100 companies had pension deficits twice market cap.

I try and puzzle if you can really get your steak and kidney pud dinner for four quid and it being profitable long term, may be it can't. Meanwhile the supermarkets, Morrison being a case in point, offers loss leader meals; so may be Wetherspoon are stuck with their prices.

May be deflation and workers' expectations are going to end up killing the private sector and we will all be buggered soon.

Edited by crashmonitor

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You just wonder whether the service sector can be profitable going forward. Wetherspoons has slashed the cost of a pub meal to levels that were prevalent when I started work over 35 years ago, in what is becoming the great service sector deflation. They can only really meet this deflation by being mega efficient and screwing suppliers down to the bone, who in turn become buggered.

Meanwhile the staff are helping themselves to what is left of these companies in other ways (beyond the living wage issue).....on another thread it was pointed out that six FTSE 100 companies had pension deficits twice market cap.

I try and puzzle if you can really get your steak and kidney pud dinner for four quid and it being profitable long term, may be it can't. Meanwhile the supermarkets, Morrison being a case in point, offers loss leader meals; so may be Wetherspoon are stuck with their prices.

May be deflation and workers' expectations are going to end up killing the private sector and we will all be buggered soon.

Those bloody fat cat bar staff and their "expectations" :rolleyes:

That longtomsilver is Laughing at us :rolleyes:

Of course this whole. ******ing shebang is not sustainable. This website. Wouldn't exist if it was.

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The greatest expectations are from the public, especially the signed up members of the skinteratti on here, and yep I'm in the club. We've got used to something for nothing when we have a global slave workforce and the home service sector has to try and match those expectations.

Obviously it can't last, as you say. Especially if you throw in a few final salary Ponzi schemes because we all believe in the alchemy and magic of these product. I assume as Wetherspoons is a relatively new player it may have at least escaped these weapons of company destruction.

I should add in terms of houses we expect nothing for something.

Edited by crashmonitor

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I honestly don't know how they do it. £1.99 a pint around here and apparently some of the chains in the local towns are even cheaper. Looking at £3.50 - £4.50 a pint everywhere else. They could easily raised prices and still be the cheapest.

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I honestly don't know how they do it. £1.99 a pint around here and apparently some of the chains in the local towns are even cheaper. Looking at £3.50 - £4.50 a pint everywhere else. They could easily raised prices and still be the cheapest.

Bulk buying plus buying up barrels with a short use by date.

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Bulk buying plus buying up barrels with a short use by date.

That is patently not true, do you honestly believe the breweries have a distribution channel whose sole purpose is to offload short dated beer? It'd be more cost effective to discard this fabled old beer you talk of and put it against the p&l. As it happens they have business analysts that specialise in forecasting in what is a just in time supply chain, wastage will be minimal - certainly not enough to wet the lips of all our customers.

The beer [at wehterspoons] is as good as anywhere else, if not better!!

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Those bloody fat cat bar staff and their "expectations" :rolleyes:

That longtomsilver is Laughing at us :rolleyes:

Of course this whole. ******ing shebang is not sustainable. This website. Wouldn't exist if it was.

What point are you making? Why am I laughing at us or are you just wishing my downfall in a shortsighted hope that when the wider economy falters and house price crash ensues then an elevated 25 year mortgage 8itch can have his cheap house and p1ss on me.. that's very bourgeois of you. You're a better person than me I get it

:rolleyes::rolleyes::rolleyes:

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Ah we have an insider in our presence.

Well as customer , I'm grateful for this just in time super efficiency. Occasionally things gets screw up it, veg not defrosted, food comes out luke warm. But generally pretty good considering the price and I'm guessing Wetherspoons staff are amongst our most productive workers or they couldn't do it.

Edited by crashmonitor

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No Witherspoons bashing here either. Being from a generation that mainly drunk larger, apart from the odd gem who has a guest ale on we had Witherspoons and proper real ale pubs which seem to consist of middle aged men with pony tails who tutted very loudly then muttered under their breath if anyone went to the bar and ordered a larger, witherspoons were a god send for groups where we all enjoyed different things.

The prices are even more attractive now as the "hipster bars" where real ale is trendy again tend to treat it as a premium product with a premium price.

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Can they afford to pay the "living wage"? If everyone got 9-10 p.h minimum though the likes of Wetherspoons would be packed out all the time :lol:

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Some of the people at the top of these large companies such as Wetherspoons are going to have to get used to the fact that the only "give" in the system is their high remuneration. I've never understood why they feel entitled to mega wages as everyone in the company deserves at least a living wage and without their workforce they wouldn't have a company to give them such a pay out anyway.

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Can they afford to pay the "living wage"? If everyone got 9-10 p.h minimum though the likes of Wetherspoons would be packed out all the time :lol:

This subject was covered by a parliamentary sub committee, it rather assumes everybody works. They don't and the minimum wage makes the poorest 20% or so poorer (and a good deal of them, Wetherspoons customers).

Indeed the biggest impact of a minimum wage is to assist the wealthiest half of the country, often second income partners adding to an already high first income and may be they would go to some sw%%ky wine bar instead.

Edited by crashmonitor

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Can they afford to pay the "living wage"? If everyone got 9-10 p.h minimum though the likes of Wetherspoons would be packed out all the time :lol:

Of course they can, a mate of mine owns a free house pub ,he can match most of Wetherspoons prices and make a tidy living without the buying power and economies of scale Wetherspoons have ,just like the supermarkets can afford to pay it, it will effect the end of year profits but it`s certainly not going to make any of these businesses unviable

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This subject was covered by a parliamentary sub committee, it rather assumes everybody works. They don't and the minimum wage makes the poorest 20% or so poorer (and a good deal of them, Wetherspoons customers).

Indeed the biggest impact of a minimum wage is to assist the wealthiest half of the country, often second income partners adding to an already high first income and may be they would go to some sw%%ky wine bar instead.

So those that graft 40 hours a week shouldn`t be paid properly because there is a layer of people at the bottom who for whatever reason can`t work?

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"This financial pressure will be felt most strongly in areas which are less affluent. It is certain that high streets in less affluent areas, which already suffer from serious problems of empty shops and dereliction, will suffer further if pubs and other labour-intensive businesses close."

For sure Wetherspoons seem to have a good reputation for what they offer but affluent areas, less affluent areas their outlets always seem to be mostly pretty jam packed.

When property prices drop which might help with workers spare cash (possibly less pressure on wages) for sure they'll be complaining that their asset valuations have dropped affecting stuff like their share price - where they own property. There's always some aspect that's increasing in price and cause for complaint but there's no complaints when wages fall as they have done for many years now at the very least in real terms. No complaints when other costs fall.

No mention how the wage subsidy due to benefits and tax credits benefits such companies. No public statement about the benefits to them of low interest rates when they're borrowing. No public statements saying they appreciate the (enforced) help from taxpayers and savers.

Edited by billybong

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So those that graft 40 hours a week shouldn`t be paid properly because there is a layer of people at the bottom who for whatever reason can`t work?

Indeed,just saying. My experience of Wetherspoons is that they have a day time bread and butter customer that goes in to drink. Most Wetherspoons have a group of these individuals. Whether they could still achieve beer volumes on higher prices is another matter. Minimum wage would help few customers. It would help a lot of their staff, if they still had jobs that is after the drinking club get priced out.

Edited by crashmonitor

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That is patently not true, do you honestly believe the breweries have a distribution channel whose sole purpose is to offload short dated beer? It'd be more cost effective to discard this fabled old beer you talk of and put it against the p&l. As it happens they have business analysts that specialise in forecasting in what is a just in time supply chain, wastage will be minimal - certainly not enough to wet the lips of all our customers.

The beer [at wehterspoons] is as good as anywhere else, if not better!!

I can agree with this. I used to work in a spoons and in the last 5 years worked for breweries supplying them.

Spoons have an incredibly good forecasting model, they're supply chain is the best in the industry.

Even down to minimising waste when lines are cleared, from memory even 15 years ago when I worked there, every last drop of beer being flushed off before a line clean gets sold. Most other pubs just write it off. Not sure if a pub gets to claim the duty back (I imagine they would though).

Cellar standards are also amongst the best in the on trade, I've never seen a dirty or miss-managed cellar at spoons in my life and consequently I'd say you're getting a better experience of beer in a spoons than in any managed pubs (I'd go as far as saying it's the only managed group that I'd feel comfortable drinking in).

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What point are you making? Why am I laughing at us or are you just wishing my downfall in a shortsighted hope that when the wider economy falters and house price crash ensues then an elevated 25 year mortgage 8itch can have his cheap house and p1ss on me.. that's very bourgeois of you. You're a better person than me I get it

:rolleyes::rolleyes::rolleyes:

The whiplash has clearly affected your powers of reasoning and sense of humour too. It was the post I replied to that referred to "workers' expectations".

I thought it was pretty clear by the use of the rolleyes emoji that my post was sarcastic/ironic - describing the rank and file wetherspoons worker, bar staff, as fat cats is clearly not true.

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The whiplash has clearly affected your powers of reasoning and sense of humour too. It was the post I replied to that referred to "workers' expectations".

I thought it was pretty clear by the use of the rolleyes emoji that my post was sarcastic/ironic - describing the rank and file wetherspoons worker, bar staff, as fat cats is clearly not true.

I think there's a recognised symbol for that now

http://si.wsj.net/public/resources/images/PJ-BK578_SARCAS_D_20121030145030.jpg

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I can agree with this. I used to work in a spoons and in the last 5 years worked for breweries supplying them.

Spoons have an incredibly good forecasting model, they're supply chain is the best in the industry.

Even down to minimising waste when lines are cleared, from memory even 15 years ago when I worked there, every last drop of beer being flushed off before a line clean gets sold. Most other pubs just write it off. Not sure if a pub gets to claim the duty back (I imagine they would though).

Cellar standards are also amongst the best in the on trade, I've never seen a dirty or miss-managed cellar at spoons in my life and consequently I'd say you're getting a better experience of beer in a spoons than in any managed pubs (I'd go as far as saying it's the only managed group that I'd feel comfortable drinking in).

I can vouch for that.

Not only to the other managed groups sell sh1t beer, which I dislike.

They try and charge ~1.50p more for it than spoons.

The only positive thing to say about the managed pubs are they are better than than the PubCos outlets, which I actively avoid now.

Not just due to the distaste of what Punch And Enterpise Inns have done to the pub business and the naive LLs who signedup, but because they sell p1ss poor beer. You cannot have a business when your core product is p1ss.

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