Value pub chain Wetherspoons will be heavily discounting the prices of its food and drinks items for one day this month.
Pubgoers attending Wetherspoons venues on Thursday 14 September can reportedly enjoy a 7.5% discount on all food and drink for the entire day. The move, which is led by Wetherspoons boss Tim Martin, is part of Tax Equality Day – a bid to highlight the benefits of a permanent VAT reduction in the hospitality industry.
According to reports, this means that any Wetherspoon customer spending £10 on food and drinks will pay only £9.25 on Tax Equality Day.
Martin’s aim is to assist in amplifying the message that while in the hospitality industry, all food and drinks in pubs are subject to 20% VAT, supermarkets pay no VAT on food and are able to use that cost saving to sell alcohol at a discounted price.
Speaking about the situation, Martin, said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets. Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%. This tax benefit allows supermarkets to subsidise the selling price of beer.”
Martin explained: “Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets. It doesn’t make sense for the hospitality industry to subsidise supermarkets.”
He added: “Customers coming to Wetherspoon’s pubs on Thursday 14 September will find the price of their food and drinks to be lower than normal. We urge the chancellor to create tax equality between pubs and supermarkets.”
This article was originally published by the drinks business and has been shared with permission.