Overall sales at pub chain JD Wetherspoon rose 2.2 per cent over the last year.
Like-for-like sales increased by 0.4 per cent in the last quarter, compared with expectations of a decline of around three per cent.
Like-for-like sales for the last year fell one per cent – as the group worked against slowing consumer spending and the smoking ban.
Eddie Gershon, JD Wetherspoon spokesperson, said: "A slowdown is definitely out there, but we are not seeing it as much as other businesses.
"We are aware of rising costs, but people still want to go out and spend £10 in the pub."
He added the chain would continue to position itself offering cheaper food and drink while the consumers got used to and accepted the smoking ban.
The current financial year will see the chain open 24 pubs.
For the coming year, the firm expects continued rising costs in energy, food, labour and tax but maintains resilient sales performance and is confidence it its prospects.
The JD Wetherspoon share price rose 5.87 per cent this morning on the update.
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