Tim Martin: Pub Powerhouse

 
They have never provided an easily exportable model but pubs continue to be major players in UK foodservice. Despite ever-tougher trading conditions, one business in particular – the 783-unit J D Wetherspoon chain – has kept on growing its estate and profits by giving customers what they want: a huge drinks choice plus tasty all-day meals, snacks, breakfast and coffee at prices which undercut international giants like McDonald’s and Starbucks. Bruce Whitehall talks to founder and chairman Tim Martin.
 
Your Wetherspoon and Lloyd's No 1 chains conform very recognisably to British pub traditions but generally in large premises with a big choice of traditional beers and other drinks at clearly identified budget prices. Unlike some of the big pub groups like Whitbread and Mitchells & Butler, you have never operated conventional table-service restaurants but your counter-served meals and snacks appear to be in increasing demand. What priority do you now give to food sales?
 
Tim Martin: It's been a massive growth area for us. Since the 1980s, our food turnover has grown from around 1% to around 30% with total value now about GBP300 m annually out of total sales of nearly GBP1 bn. If you include drinks sold together with food - like fish and chips sold with a pint of beer at a package deal price - food probably accounts for nearly half our sales. Apart from McDonald's, we probably sell more food than any other UK high street chain, including Pizza Express.
 

What's the secret of this food salesgrowth?
 
Tim Martin: Increased hours of availability have been very important. We were the first pub company to open for food all day from opening time until 10 pm at night. In the past 3-4 years, we started opening at 9 am (from 11 am) and have now gone to 7 am at many pubs. These timings are very revolutionary for pubs; in many towns you would still be lucky to get any food from a pub in the middle of the afternoon, apart from ours. The earlier opening has been good for building breakfast trade, which now gains about 10-15% of our total food sales.

 

 
| 18 August 2010 |