A trade association has voiced concerns following the announcement that UK pub giant Wetherspoon is set to open its first venue on the Isle of Man next month.

A spokesperson for Wetherspoon, Eddie Gershon, expressed confidence in the move, saying the chain was ‘confident that the new pub will appeal to a wide range of customers and be an asset to the social scene in Douglas.’

However, the news has sparked concern among the island's hospitality sector and has left many members of the Licensed Victualler’s Association (LVA) worried about the potential impact on existing pubs and bars.

Concerns

1886 bar and restaurant on Regent Street, Douglas
1886 bar and restaurant on Regent Street, Douglas (Media Isle of Man )

Andy Gibbs, chair of the island’s LVA and part owner of the Jak’s Group, which operates five venues across the island, acknowledged the competitive threat posed by Wetherspoon’s business model.

Speaking to Isle of Man Today, he said: ‘Obviously, it’s been a bit of a surprise to a lot of the members. We didn’t really expect it.

‘Quite a few members have expressed concerns, particularly regarding pricing.’

Asked whether he was worried it would pull people away from his venues, Mr Gibbs said: ‘Wetherspoon aims to be the cheapest, but we feel that what we offer our customers is excellent quality, excellent products, and strong support from our local suppliers.’

One major worry is the pub giant's ability to undercut local prices due to its large-scale purchasing power.

Mr Gibbs said that unlike many island businesses, Wetherspoon has established supply chains that allow it to buy in bulk at significantly lower costs.

‘They have their own connections, which is why they can buy so cheaply,’ he said.

‘The reality is, they sell in such huge volumes that they can secure extremely competitive pricing.’

Impact

Mr Gibbs also raised questions about the effect on the wider hospitality industry, particularly smaller independent venues.

‘There’s a good possibility that some free houses and smaller pubs could struggle. It’s the smaller places I feel for.

‘Who will they attract? Will existing customers switch to Wetherspoon because of price? That’s the concern,’ he said.

Despite his reservations, Mr Gibbs remains optimistic about the resilience of the island’s hospitality industry and in particular, his own business model.

‘Personally, it doesn’t bother me too much. Competition makes you up your game,’ he added.

‘If things need to be adjusted, we adapt. We’re a resilient crew here on the Isle of Man, and a lot of our patrons are loyal. They’ll go and try it, but many will come back to us.’

Long-term

Jaks, on Loch Promenade
Jaks, on Loch Promenade (-)

Another factor that Mr Gibbs believes Wetherspoon will need to consider is the island's higher operating costs.

‘The Isle of Man is not the UK,’ he said.

‘We have different wage structures, higher energy costs, and additional expenses linked to being on an island.

‘Wetherspoon's model relies heavily on employing 18 to 21-year-olds at lower wage rates, which might not be as straightforward here,’ he explained.

He also speculated about the company’s long-term plans for the island.

‘I don’t see them expanding beyond Douglas,’ he said.

‘The population and footfall simply aren’t here for multiple locations.

‘Years ago, Wetherspoon looked at coming here and decided the population wasn’t big enough. We’ve grown since, but it’s still a challenge.’