Greene King has announced plans to potentially sell off 150 of its pubs and convert another 150 into tenanted establishments. The company has identified 300 sites that it believes would benefit from different operational models.
While specific locations are not disclosed, Greene King mentioned that these at-risk pubs will be transitioned to a new business unit. Additionally, the company has pinpointed a small number of sites for closure, amounting to less than 2% of its managed estate.
With approximately 1,500 managed sites under its various brands, including 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 proceeds from these changes will be reinvested into its core pubs and a digital initiative worth £35 million to enhance customer loyalty.
Nick Mackenzie, CEO of Greene King, expressed confidence that the new pub estate strategy will drive sustainable growth in the evolving consumer landscape. By leveraging its Pub Partners business and focusing on brand strengths, digital investment, and customer experiences, Greene King aims to deliver exceptional services in the long run.
These decisions come amidst government support for struggling pubs, including a 15% reduction in new business rate bills and a freeze on real-terms bills for the next two years. Licensing reforms will also allow pubs to extend their operating hours during the latter stages of the upcoming World Cup matches.
The industry has been advocating for support, with the Mirror’s Your Pub Needs You campaign championing the cause. The Treasury’s actions follow concerns raised by industry leaders and lawmakers regarding tax increases and potential closures in the sector due to upcoming business rate changes and the gradual withdrawal of Covid-related discounts.