CK Asset : Wetherspoon plans new pubs around Britain, creating 10,000 jobs

British pub operator J D Wetherspoon said on Tuesday it will create more than 10,000 jobs over the next four years as it plans to invest over 200 million pounds ($256.60 million) to open new outlets in the UK and Ireland.

The expansion, which will increase Wetherspoon's workforce by nearly a quarter, comes as most pub and restaurant chains in Britain battle increasing costs due to a mandatory minimum wage hike and rising rental and energy bills.

Wetherspoon said it plans to open between 50 and 60 new pubs and some hotels. They will mostly be in small and medium-sized British towns and cities but also in London, Edinburgh, Glasgow, Birmingham and Leeds as well as the Irish cities of Dublin and Galway.

The strain on UK pub operators finances has led to M&A activity with Greene King bought out by Hong Kong's CK Asset for 4.6 billion pounds, and Slug and Lettuce pub chain owner Stonegate agreeing to buy Ei Group for 1.27 billion pounds.

Weatherspoon, however, said it was not seeking acquisitions.

"Wetherspoon will not be entering into any deal like everyone else," a company spokesman said.

The company, which was founded by chairman Tim Martin in 1979 and operates 875 pubs and 58 hotels across the UK and Ireland, has largely grown organically, often opening pubs in locations such as former banks and cinemas. In recent years it has also been investing in its more labour-intensive food and coffee businesses.

ECONOMIC UNCERTAINTY

Its expansion plan follows strong first-quarter results as Wetherspoon saw higher demand for pink gin, coffee, real ale, breakfasts and beer.

It also comes amid economic uncertainty with Britons due to go to the polls on Thursday in a national election that could decide when or even if Britain leaves the European Union.

Wetherspoon's Martin, who is also the company's biggest shareholder, has been a vocal advocate of Britain leaving the European Union.

"We are looking forward to opening many more new pubs as well as investing in existing pubs over the next four years," Martin said in a statement.

New Wetherspoon pubs will open in places such as Bourne, Ely, Diss, Felixstowe, Newport Pagnell and Prestatyn, the company said.

However, a costly expansion drive will coincide with Britain's plan to raise the minimum wage to 10.50 pounds an hour, from 8.21 pounds currently, whoever wins Thursday's election. The opposition Labour Party has said it would raise the wage to 10 pounds an hour in its first budget if it wins power.

By Samantha Machado and Noor Zainab Hussain