Greene King has announced plans to potentially sell 150 of its pubs and convert another 150 into tenanted pubs. The company identified 300 sites that it believes would be better suited under different operating models. While specific sites at risk have not been disclosed, Greene King mentioned that these pubs will be transferred to a new focused business unit during the transition.
Additionally, Greene King has pinpointed a small number of sites for closure, representing less than 2% of its managed estate. The company operates approximately 1,500 managed sites under various brands such as Greene King pubs, Hungry Horse, Chef and Brewer, Farmhouse Inns, and Flaming Grill, along with 1,000 leased, tenanted, and franchise pubs.
This strategic move by Greene King aims to reinvest proceeds from the pub sales into its core establishments and a digital initiative worth £35 million to enhance customer loyalty. CEO Nick Mackenzie expressed confidence in the new pub estate strategy, emphasizing the importance of aligning the estate to drive sustainable growth amid evolving consumer behaviors.
The decision by Greene King comes amidst the Government’s announcement of a 15% reduction in business rate bills for struggling pubs, effective from April, with an additional two-year freeze on bills in real terms. As part of licensing reforms, pubs and other licensed venues will have the opportunity to extend their opening hours during the later stages of this year’s World Cup matches.
The measures introduced by the Treasury follow industry outcry over impending tax hikes and the phasing out of Covid-era discounts, which were announced in the Budget last November. The Mirror has been actively supporting the pub industry through its Your Pub Needs You campaign, advocating for support for landlords and their communities.