Greene King has revealed plans to potentially divest 150 of its pubs and transform another 150 into tenanted establishments. The company has pinpointed 300 sites that it believes would benefit from alternative operational models.
Although the specific locations at risk have not been disclosed, Greene King intends to transition these pubs to a newly focused business unit during the process. Additionally, a small number of sites, representing less than 2% of its managed estate, have been earmarked for closure.
With approximately 1,500 managed sites under its portfolio, 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 strategic restructuring is aimed at reinvesting proceeds from the sales back into its main pubs and launching a £35 million digital initiative to enhance customer loyalty.
CEO Nick Mackenzie expressed confidence in the new pub estate strategy, emphasizing the importance of adapting to evolving consumer behaviors and a dynamic operating environment. By leveraging its Pub Partners business, Greene King aims to strengthen its brand offerings, capitalize on digital investments, and provide exceptional customer experiences.
The decision comes in the wake of the 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 the implementation of the measure starting in April, with a freeze on bills for pubs for an additional two years. Furthermore, a review of the valuation model used for pubs is also on the agenda.
In a bid to support the industry, licensing reforms will allow pubs and licensed venues to extend their opening hours beyond midnight during the later stages of this summer’s World Cup matches. The Mirror has been actively advocating for the sector through its Your Pub Needs You campaign, urging backing for landlords and their local communities.
The Treasury’s intervention follows mounting pressure from industry leaders and lawmakers regarding impending tax hikes and the anticipated wave of closures. Pubs are bracing for increased bills in April due to upcoming changes in business rates and the phasing out of Covid-related discounts, as announced in the Budget last November.