The boss of a UK brewery giant has issued an update over its decision to put 150 of its pubs up for sale. Greene King, which has around 2,500 pubs, restaurants and hotels across England, Wales and Scotland, recently revealed plans to put around 150 of its pubs up for sale in a major shake-up to its estate.
The brewery giant, which also brews Greene King IPA, Old Speckled Hen and Belhaven beers, has identified around “300 managed sites that would be better served under different models”. The firm expects roughly half of these – about 150 pubs – to be converted into leased, tenanted or franchise venues within its Pub Partners estate, with the remaining 150 sites to be evaluated for a potential sale. Impacted venues will be moved into a new, separate business unit while they transition. Greene King also identified a small number of sites for closure, representing fewer than 2% of the managed estate, in line with the group’s typical annual activity. Announcing the brewery’s annual results, Green King chief executive Nick Mackenzie said: “Long-term permanent reform from government is essential to ensure that unprecedented costs do not hold back the enormous potential of the sector.”
Quoted by City AM, he blamed “the cost environment that our industry has faced for the last five years, which is increased employment costs, increased cost of goods through events like the Ukraine war and now obviously what’s happening in Iran and the general economy”.
Mackenzie also took aim at business rates, after changes to the tax at last year’s Budget sent bills soaring for thousands of pubs and saw Chancellor Rachel Reeves forced into a £300m concession.
In March, Mackenzie said: “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.
“The realignment of our estate 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.”
Last month, it was also said the shake-up forms part of the company’s wider 2030 group strategy, which Greene King says is focused on delivering market share growth and improving margins in what it described as an “increasingly dynamic operating environment”.
Funds raised from disposals are expected to be reinvested into the company’s core pub estate, alongside plans to invest an estimated £35million this year in digital technology aimed at strengthening customer loyalty and supporting growth.
Greene King operates three main divisions – its ‘Managed Pubs’ arm runs around 1,500 sites, including brands such as Greene King pubs, Hungry Horse, Chef & Brewer, Farmhouse Inns and Flaming Grill, as well as ventures like Hickory’s and its hotel business.