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Wetherspoon To Raise Prices? Margins Can't Afford Living Wage

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Wetherspoons boss hints at potential price rises

Pub chain reports fall in margins as National Living Wage is likely to lead to a sharp increase in staffing costs

I wonder how many of it's staff claim tax credits? Perhaps the key is to hire mostly 18-20 year olds and only have the bare minimum of staff over 21? Surely this would help keep costs down and profit margins up?

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Great to see the labour / capital rebalance in action.

I like spoonies and worked there while at uni but I feel they have / are loosing their value proposition.

Staff are worked off their feet, tables uncleared, coffee tanks left empty on one hand. On the other their food prices are no longer as cheap as they should be / were.

I also think they cruelly overlook the fact that many of their regulars are addicts I.e alcoholics and do nothing to help them. Pop in for a spooners breakfast at 9 on a sat! Not all of them are postmen.

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I drink in a couple of Wetherspoons, where I generally drink the ales. I still think the food and beer is significantly cheaper than other pubs in my area and they probably have room to raise prices a bit. Whether the other clientele agree, we will see.

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Great to see the labour / capital rebalance in action.

I like spoonies and worked there while at uni but I feel they have / are loosing their value proposition.

Staff are worked off their feet, tables uncleared, coffee tanks left empty on one hand. On the other their food prices are no longer as cheap as they should be / were.

I also think they cruelly overlook the fact that many of their regulars are addicts I.e alcoholics and do nothing to help them. Pop in for a spooners breakfast at 9 on a sat! Not all of them are postmen.

I used to work with an ex-barman...They'd be in at 8.50am, have their drink poured, then the money taken at 9am.

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Ironically despite Tim Martin's euroskepticism, half the staff in my local 'spoons are portugese or Spanish...

Oh come on, are you really surprised?

One of the reasons I have little time for the more rabid euroseptics [sic] is that they'd call for members of the european court of human rights to be gassed (if they were in a good mood), but the moment someone looked at them a bit funny they'd running off like a bunch of pansies to Strasbourg faster than you could say "hypocrite pussy scum".

As Alan Bennett said (much to the protest of the retarded right cry babies at the Express or Mail) the one thing the English excel at is hypocrisy.

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So they have to rise prices. So what ? All other businesses that compete with them are in the same boat. If their staff can't afford to live off low wages, its a return to slavery - and its a good point that we could do with a bit of inflation. The target is 2% not 0%.

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Oh come on, are you really surprised?

One of the reasons I have little time for the more rabid euroseptics [sic] is that they'd call for members of the european court of human rights to be gassed (if they were in a good mood), but the moment someone looked at them a bit funny they'd running off like a bunch of pansies to Strasbourg faster than you could say "hypocrite pussy scum".

As Alan Bennett said (much to the protest of the retarded right cry babies at the Express or Mail) the one thing the English excel at is hypocrisy.

Wouldnt call it hypocrisy...you're likely legally obliged not to discriminate in favour of UK born workers...

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A pint of real ale costs £2.05 in spoons at Wick.

The same pint in Cornwall costs £3.60. It's brewed at Rock, Padstow.

One is near John O'Groats the other near Landsend. How can you explain the difference in price?

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A pint of real ale costs £2.05 in spoons at Wick.

The same pint in Cornwall costs £3.60. It's brewed at Rock, Padstow.

One is near John O'Groats the other near Landsend. How can you explain the difference in price?

Are you talking about Doom Bar? That's no longer connected to Cornwall since it got borged by one of the biggest, baddest breweries in the business. Now brewed somewhere in the midlands.

There are of course plenty of excellent beers brewed in Cornwall. I think the only big brewery is the Snozzle (of Tribute fame), but there are lots of small breweries: just a couple that spring to mind are the pirate-themed Wooden Hand and the wonderful Betty Stogs. So no great hardship to lose one.

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Considering a lot of their pubs are good buildings in prime locations, I'd prefer a slightly higher price in their outlets than the pubs being "re-developed" or changed to poundland shops or beauty salons. In some parts of London they are the only "proper" pubs left, in as much as you can call a Spoons a proper pub. All the other places have become trendy "gastro" pubs or backpacker hostels.

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...and its a good point that we could do with a bit of inflation. The target is 2% not 0%.

Explain why is it good, especially for the average Joe you seem to so concerned about, at least in the abstract...

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There'll be plenty of other businesses raising prices & trimming staff levels over the next year or two I reckon.

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So they have to rise prices. So what ? All other businesses that compete with them are in the same boat. If their staff can't afford to live off low wages, its a return to slavery - and its a good point that we could do with a bit of inflation. The target is 2% not 0%.

Camoron tried to take credit for 0% inflation at PMQ's as if it was a good thing. :lol::lol::lol:

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Higher wages, lower profit margins. What's not to like?

Are you being ironic here, my detector cant make up its mind ... the whole point is that inflation is pretty much an indirect tax that affects the lower paid stratum of the society more than anyone else. Now, lower profit margins ... the guys investing take their risks and all that. Whatever the reason and maybe a narrow joy for someone that the capital provider does not make money and even loses, the eventual upshot maybe less than inspiring - closure or contraction of that particular business that results in unemployment.

On this note, there is absolutely no reason to cheer lead government imposed tariffs in a market that is otherwise open and subject to to free competition. Minimum wage requirement is a totally redundant measure. If it's too low and market commands higher wage, it's obvious why. If it's too high, artificial unemployment will result because not everyone can get employed.

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Camoron tried to take credit for 0% inflation at PMQ's as if it was a good thing. :lol::lol::lol:

Curiously it is indeed - try explain your mom or wife why is it good that you pay more for bread or milk, will you?

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Curiously it is indeed - try explain your mom or wife why is it good that you pay more for bread or milk, will you?

I reckon that we have a lot of people who have never lived with inflation. They think that inflation means that wages rise. They forget that prices always seem to rise that bit faster.

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This is all getting a bit misreported and misquoted perhaps.

Basically the pubs can't compete with supermarkets on alcohol prices. Which is all about taxes, not minimum wages.

Never mind beer, the price of a glass of wine in an English pub is just crazy compared with the rest of Europe.

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I work at Spoons and was away last week (attending someone's wedding) as a new pub manager has come in. She's halved my hours (0 hour contract) almost to the point its not worth doing anymore. My guess is she's coming in and cutting costs to shine. Statistically I'm the best they have, an error rate consistently under 2% (clears, which in my case are mostly customers changing their minds). Most other members are in the 5-6% ballmark with the younger ones 8%-12% against a benchmark of 3%. My takings are on average higher too as i don't stand around sipping coffee and chatting like others do. Still at least they are saving on wages (£5.50 an hour as opposed to £7 for my old bones).

:D

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I work at Spoons and was away last week (attending someone's wedding) as a new pub manager has come in. She's halved my hours (0 hour contract) almost to the point its not worth doing anymore. My guess is she's coming in and cutting costs to shine. Statistically I'm the best they have, an error rate consistently under 2% (clears, which in my case are mostly customers changing their minds). Most other members are in the 5-6% ballmark with the younger ones 8%-12% against a benchmark of 3%. My takings are on average higher too as i don't stand around sipping coffee and chatting like others do. Still at least they are saving on wages (£5.50 an hour as opposed to £7 for my old bones).

:D

Same thing has happened at my local Spoons. Less staff expected to work harder, presumably so the manager can have a larger bonus? Tables not cleared, coffee often empty and a longer queue at the bar.

Re an earlier post about their different prices in different places. Someone there told me, when they open a new pub, they price as high as they can to undercut their cheapest competitor.

Samuel Smith pubs have cheap drinks.

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So they have to rise prices. So what ? All other businesses that compete with them are in the same boat.

No they aren't, their customers can just switch to forms of consumption that use less labour than drinking in a pub.

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Basically the pubs can't compete with supermarkets on alcohol prices. Which is all about taxes, not minimum wages.

What tax does a pub pay on a pint of beer that a supermarket doesn't?

I don't think pub prices are driven by tax, it's all about rent.

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