Greene King has revealed plans to potentially divest 150 of its pubs and convert an additional 150 into tenanted establishments. The company has identified 300 sites that could benefit from alternative operational models. While specific locations at risk have not been disclosed, Greene King intends to transfer these pubs to a specialized business unit during the transition.
Moreover, Greene King has pinpointed a few sites for closure, accounting for less than 2% of its managed estate. The company manages approximately 1,500 sites under various brands such as Greene King, Hungry Horse, Chef and Brewer, Farmhouse Inns, and Flaming Grill, alongside 1,000 leased, tenanted, and franchise pubs.
This strategic move aims to redirect proceeds from the pub sales back into core operations and a digital initiative worth £35 million to enhance customer loyalty. Nick Mackenzie, CEO of Greene King, expressed confidence in the long-term profitability of the new pub estate strategy, emphasizing the importance of adapting to evolving consumer behaviors and dynamic market conditions.
In related news, the UK Government has announced a 15% reduction in business rate bills for struggling pubs as part of a comprehensive support package. Treasury minister Dan Tomlinson confirmed that this measure will take effect from April, with a freeze on bills for pubs for an additional two years. The government will also review the valuation model used for pubs in response to industry challenges.
Furthermore, as part of licensing reforms, pubs and licensed venues will have the option to extend operating hours past midnight during the latter stages of this summer’s World Cup matches. The industry, championed by initiatives like the Your Pub Needs You campaign by the Mirror, has been advocating for support to protect landlords and their communities amid financial pressures and impending tax changes.
The Treasury’s intervention follows mounting pressure from industry leaders and lawmakers regarding upcoming tax hikes and the removal of Covid-related relief measures. Pubs are anticipating increased bills in April due to changes in business rates and the phasing out of pandemic-related discounts outlined in the recent Budget announcement.