Wetherspoons giving customers a 7.5% discount at all of its 827 pubs.
Wetherspoons pubs have taken a noteworthy step to shed light on the tax burdens faced by the hospitality industry. To commemorate Tax Equality Day, emphasising the potential benefits that a permanent reduction in Value Added Tax (VAT) could bring to pubs and restaurants nationwide, the popular pub chain has announced a one-day price reduction of 7.5% on all food and beverages in their establishments across the United Kingdom and Ireland on Thursday, September 14th.
This means that someone spending £10 on food and drinks would actually cost them £9.25 on this specific day.
It's worth noting that in Scotland, the price reductions will specifically apply to food and non-alcoholic drinks in accordance with Scottish licensing laws.
Wetherspoons' motivation behind this endeavour is to shine a spotlight on the glaring imbalance in how pubs and restaurants are taxed compared to supermarkets. Tim Martin, the founder and chairman of the group, has been an advocate for addressing this issue. He points out the striking disparity where supermarkets pay no VAT on food sales while pubs and restaurants bear a 20% VAT burden. This tax differential enables supermarkets to offer beer at lower prices, indirectly creating a competitive disadvantage for pubs.
Martin argues that this tax regime essentially results in the hospitality industry subsidising supermarkets, a situation he strongly condemns. He calls upon the Chancellor to establish tax parity between pubs and supermarkets. This isn't the first time Martin has voiced these concerns; he has previously lamented how the attractive pricing of beer in supermarkets has discouraged consumers from patronising their local pubs. Moreover, he has criticised some senior politicians for their perceived lack of understanding regarding inflation and its adverse impact on the hospitality sector.
Wetherspoon, as of July, operates a substantial network of 827 pubs throughout the UK and Ireland. With this pricing initiative, they aim to draw attention to the pressing need for fair taxation in the industry, highlighting the challenges that pubs and restaurants have faced for years due to the unequal tax treatment they endure in comparison to supermarkets.