Greene King has disclosed plans to potentially divest 150 of its pubs and convert another 150 into tenanted establishments. The company has earmarked 300 sites for potential restructuring to better suit alternative operating models.
While specific site details have not been disclosed, Greene King mentioned that the affected pubs will be transitioned to a new dedicated 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 various brands like 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 company intends to utilize the proceeds from the pub sales to reinvest in its core establishments and allocate £35 million towards enhancing digital initiatives to enhance customer loyalty.
Nick Mackenzie, the CEO of Greene King, expressed confidence in the new pub estate strategy, emphasizing a focus on sustainable profitable growth amid evolving consumer behaviors and a dynamic operating landscape. The strategic realignment of the estate, leveraging the strength of the Pub Partners business, aims to optimize brand potential, leverage digital investments, and enhance customer experiences.
This announcement coincides with the government’s support package for struggling pubs, which includes a 15% reduction in new business rate bills effective from April. The support also includes a freeze on bills for pubs for an additional two years in real terms, along with a review of the valuation model used for pubs.
As part of broader licensing reforms, pubs and other licensed venues will have the option to extend their operating hours past midnight during the latter stages of this summer’s World Cup matches. The industry, championed by campaigns like Your Pub Needs You by the Mirror, has been advocating for support to address challenges faced by landlords and communities they serve.
The Treasury’s intervention follows mounting concerns raised by industry leaders and lawmakers regarding impending tax hikes, which were feared to trigger a wave of closures. Pubs are bracing for increased bills in April due to upcoming changes in business rates and the phasing out of Covid-era discounts announced in the Budget last November.