British pub giant Greene King is preparing to sell around 150 of its managed pubs and shift another 150 to different operating models as soaring costs and changing consumer habits force a major shake-up of its estate.
The company, Britain’s second-largest pub operator with roughly 2,500 venues across the UK, said it has identified about 300 managed sites that would be “better served under different models.”
These will be moved into a new dedicated business unit. Roughly half will be put up for sale over the medium term, while the other half will transition into leased, tenanted, or franchised operations under its Pub Partners division, which already manages around 1,000 such sites.
A small number of sites, fewer than 2% of its roughly 1,500 managed pubs, or around 20 locations, have also been earmarked for closure.
The company described these as in line with normal annual activity and said affected staff would be offered redeployment opportunities elsewhere in the business.
Proceeds from the sales will be reinvested into Greene King’s core portfolio, while the separate unit will run the transitioning sites on a simplified model to maximise returns in the interim.
Chief executive Nick Mackenzie said the overhaul is designed to strengthen the business for the long term.
“We are confident that our new pub estate strategy will set us up to deliver sustainable profitable growth for the long-term as consumer habits continue to evolve and the operating environment remains dynamic,” Mackenzie said in a statement.
“The realignment of our estate, which leverages our strategically important Pub Partners business, enables us to play to the strengths of our brands, capitalise on our investment in digital and loyalty, invest effectively in our core portfolio and most importantly continue to deliver exceptional experiences for our customers.”
The moves come as the hospitality sector grapples with relentless cost pressures. Business rates reforms have increased bills for thousands of operators despite a government concession package worth around £300 million.
Energy costs are rising amid geopolitical tensions, while employment expenses are climbing due to minimum wage hikes and Labour’s workers’ rights reforms.
Recent wet weather has also weighed on sales, with sector-wide figures for February down 0.2%. Broader industry warnings, including from JD Wetherspoon and Shepherd Neame, point to further squeezes that could push up pint prices and accelerate closures.
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