Greene King has announced its plans to potentially sell 150 of its pubs and convert another 150 into tenanted pubs. The company has identified 300 sites that could benefit from different operating models. While specific locations at risk have not been disclosed, these pubs will be transitioned to a new business unit.
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 across 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.
The strategic move aims to enable Greene King to reinvest proceeds from the sales into its core pubs 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 adapting to evolving consumer behaviors and a dynamic operating environment.
In related news, struggling pubs are set to receive a 15% reduction in new business rate bills as part of a significant support package from the Government. Treasury minister Dan Tomlinson confirmed the measure, which will take effect from April, with a freeze on bills for pubs for the next two years. The valuation model for pubs will also undergo a review.
As part of licensing reforms, pubs and other licensed venues will have the opportunity to extend their operating hours after midnight during the later stages of this summer’s World Cup matches. The industry has been advocating for support through campaigns like Your Pub Needs You, championed by publications like the Mirror.
The intervention from the Treasury follows concerns raised by industry leaders and lawmakers regarding impending tax hikes and the potential closure of pubs. With upcoming changes to business rates and the phasing out of Covid-related discounts announced in the Budget last November, pubs are facing financial challenges that threaten their viability.