Wetherspoon to make all pubs non-smoking

Pub chain J D Wetherspoon has reported a 2% drop in third quarter sales and noted a slight decrease in beer sales purchases in its non-smoking pubs.

However, Wetherspoon said trading at non-smoking pubs had been in line with its expectations, and although food sales had increased, the company said these pubs had experienced some margin pressure.

It also said that if sales from 12 new pubs were included, then overall sales rose by 2% to £202.9 million.

Despite the overall performance, the firm said it would ban smoking in all its 650 pubs by May 2006, even though they felt that this was deterring some customers.

Wetherspoon expanded rapidly through the 1990s, but has faced increasing competition from rival pub operators and rising costs, the chain has been forced to issue three profit warnings in 2004.

(CD/SP)