When other pubs and restaurants raise their prices, Wetherspoons sells pints for 99p.

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When other pubs and restaurants raise their prices, Wetherspoons sells pints for 99p.

The secret to how the budget retailer manages to cheer up its customers, as it promises to extend discounts until February.

In pubs and restaurants across the country, food and drink prices are rising, but Wetherspoons manages to sell medium glasses of wine for £1.69, pints for 99p, and Bell’s whisky for under £2.

Last month, the budget retailer announced its annual round of deals, which it promised would last until February of the following year.

Tim Martin, the boss of JD Wetherspoon, has sparked suspicion in the hospitality industry by selling alcohol so cheaply in almost all of the company’s 925 locations (around 200 have slightly higher prices).

Given that the average price of a pint in the UK is £3.86 as of 2021, industry insiders have questioned whether someone along the supply chain may be losing out.

Inflation is causing prices to rise quickly.

According to data from wholesalers, food and beverage costs increased by 8-12 percent year over year in October, while utilities like gas and electricity increased by more than 50%, and wages increased by 13%.

Martin claimed that suppliers are properly compensated, and that his company is more of a retailer than a pub chain, competing with McDonald’s and supermarkets.

“We haven’t received any price reductions from suppliers,” he explained.

Some of the industry’s largest companies provide the products.

“To some extent, Wetherspoon is competing with supermarkets and companies like McDonald’s, which have competitive prices and offers.”

Staffing is one area where Wetherspoons could save money.

Workers outside of London start at £9.40 an hour, receive free meals, and may be eligible for a bonus scheme.

The Real Living Wage (£9.90) is the national minimum wage.

According to Total Jobs, the average hospitality salary in the UK is £25,000 per year, though wages have increased since the lockdown.

However, one pub expert, who requested anonymity, stated that it is primarily about volume and scale.

“They place large orders, and their buying power and scale help to keep costs down,” he explained.

“They also have to operate with smaller profit margins than their competitors.”

Let’s say they buy a bottle of wine for £3 and sell it for £7, which is a smaller profit margin.

UK news summary from Infosurhoy.

When other pubs and restaurants raise their drink prices, Wetherspoons sells pints for 99p.

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How Wetherspoons sells pints for 99p when drinks prices are rising in other pubs and restaurants

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How Wetherspoons sells pints for 99p when drinks prices are rising in other pubs and restaurants

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