Greene King has revealed plans to potentially sell off 150 of its pubs while also considering converting another 150 into tenanted establishments. The company has identified 300 sites that it believes would be better suited under different operating models.
Although the specific list of at-risk locations has not been disclosed, Greene King stated that these pubs will be transferred to a new dedicated business unit as part of the transition process. Additionally, the company has earmarked a small number of sites for closure, representing less than 2% of its managed estate.
With approximately 1,500 managed sites under its various brands such as Greene King pubs, Hungry Horse, Chef and Brewer, Farmhouse Inns, and Flaming Grill, Greene King also operates 1,000 leased, tenanted, and franchise pubs. The strategic move is aimed at enabling the company to reinvest proceeds from the sales into its core pubs and to launch a £35 million digital initiative to enhance customer loyalty.
Nick Mackenzie, CEO of Greene King, expressed confidence in the new pub estate strategy, emphasizing the importance of aligning the estate to ensure sustainable growth amidst evolving consumer behaviors and a dynamic operating environment. Leveraging the strengths of its brands and investments in digital technologies and loyalty programs, the company aims to continue providing exceptional experiences for its customers.
The decision by Greene King comes in the wake of the UK Government’s announcement of a 15% reduction in new business rate bills for struggling pubs as part of a comprehensive support package. Treasury minister Dan Tomlinson confirmed that the reduction will take effect from April, with a freeze on bills for pubs for an additional two years and a review of the valuation model used for pubs.
Furthermore, as part of licensing reforms, pubs and other licensed venues will have the option to extend their operating hours beyond midnight during the later stages of this summer’s World Cup matches. The industry has been actively supported by initiatives like the “Your Pub Needs You” campaign by the Mirror, advocating for backing landlords and the communities they serve.
Amid mounting concerns over impending tax hikes and the phase-out of Covid-era discounts, the Treasury’s intervention follows criticism from industry leaders and lawmakers warning of potential closures. Pubs are bracing for increased bills in April due to upcoming changes in business rates and the discontinuation of pandemic-related relief measures announced in the Budget.
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