Greene King has announced plans to potentially sell 150 of its pubs and convert another 150 into tenanted pubs. The company has identified 300 sites that could benefit from different operational models. While specific locations at risk have not been disclosed, these pubs will be moved to a new business unit during the transition phase.
In addition, Greene King has pinpointed a small number of sites for closure, amounting to less than 2% of its managed estate. The company operates approximately 1,500 managed sites across various brands, including Greene King pubs, Hungry Horse, Chef and Brewer, Farmhouse Inns, and Flaming Grill, along with 1,000 leased, tenanted, and franchise pubs.
The strategic restructuring aims to generate funds from the pub sales to reinvest in core pub operations and a digital initiative worth £35 million to enhance customer loyalty. Nick Mackenzie, CEO of Greene King, expressed confidence in the new pub estate strategy, emphasizing sustainable growth amidst evolving consumer behaviors and a dynamic operating environment.
This move by Greene King aligns with the government’s recent support package for struggling pubs, which includes a 15% reduction in new business rate bills starting in April. Treasury minister Dan Tomlinson highlighted the freeze in real-terms bills for pubs for the next two years and the upcoming review of the valuation model for pubs.
Moreover, as part of licensing reforms, pubs and other licensed venues will have the option to extend opening hours during the later stages of this summer’s World Cup matches. The industry has been advocating for support, with campaigns like Your Pub Needs You by the Mirror, in response to concerns over impending tax increases and potential closures due to rising operational costs.
Overall, the measures taken by Greene King and the government aim to navigate the challenges faced by the pub industry and support its long-term sustainability.