JD Wetherspoon has told investors it is planning to reopen its pubs “in or around June”.
All of the chain’s 867 pubs in the UK have been shut since the government ordered the closure of social venues on 20 March.
Any reopening of pubs would have to be permitted by the government, which has not yet given any guidance about when it will start to ease restrictions.
Few analysts believe that pubs will be among the first venues to reopen. However, at the start of its half-yearly results, Wetherspoon said: “The company’s immediate priority is to manage the business during the current ‘lockdown’ period. It is also starting to plan for a reopening of pubs and hotels in or around June.”
Before the nationwide shutdown, the company’s boss, Tim Martin, had vowed to keep his pubs open as long as possible, saying that he did not believe closing pubs, bars and restaurants would help prevent the spread of coronavirus.
Wetherspoon made its reopening prediction as it announced it was raising £140m in order to help it through the lockdown.
The company said it believed it was relatively well placed to handle social distancing rules, once restrictions were eased, adding: “Wetherspoon pubs are substantially larger than average, and most have outside facilities.
“The company is likely to make some changes to its operating model, assuming increased social distancing, and anticipates a gradual recovery in customer numbers.”
The chain has furloughed 99% of its 43,000 employees, and says it is paying on average 80% of pre-lockdown pay levels. It said topping up employee payments is costing it £600,000 per month.
Wetherspoon has drawn criticism for its behaviour during the early stages of the crisis, when it initially said it could not afford to pay its staff until it received money through the government furlough scheme, before it changed tack and said it had created its own reimbursement scheme.
The backlash grew after the chain confirmed that it had told firms supplying food, drinks and other services that they would not be paid until its pubs were allowed to reopen.
Wetherspoon said it expected to save around £60m this year due to the government’s decision to scrap business rates for retail, leisure and hospitality firms until the end of the year. The group’s senior executives had also taken 50% pay cuts, it said.
The chain expected like-for-like sales to be 10% lower during the first month after reopening, and then gradually increase by 2% each month, ending up 3% higher than before lockdown.