Wetherspoon boss blames Aldi for slipping margins

Wetherspoon has been campaigning for pubs to be charged the same VAT as supermarkets for alcohol sales

Wetherspoons said that like-for-like sales increased by 1.7% but the operating margin was 7.5% compared with 8% in the same period last year (Oli Scarff | Getty Images )

Aldi and other discount supermarkets are to blame for a slip in operating margins at Wetherspoon in the first three months of the year, according to the pub chain's chief executive, Tim Martin.

Martin blamed "Aldi and others opening outside the big cities" for a slip in margins at the pub company. "Beer and wine lines are their main promotional lines. The whole industry will be under pressure until there is tax equality with supermarkets," he said.

Wetherspoon has been campaigning for pubs to be charged the same VAT as supermarkets for alcohol sales.

Martin added that blaming new drink driving regulations in Scotland, as rival Greene King did yesterday, was "a smokescreen".

Reporting results for the three months to the end of April, Wetherspoon said that like-for-like sales increased by 1.7% but the operating margin was 7.5% compared with 8% in the same period last year.

Tim Martin blamed "Aldi and others opening outside the big cities" for a slip in margins at the pub company (PA)

Wetherspoon is anticipating the full-year margin to be between 7.3% and 7.7%.

The pub company will open 30 pubs this year and has started serving cut-price breakfast deals to help sales.

Despite the gloomy tone of its update, shares in Wetherspoon rose by 3.61% to 762.57 in early trading.