Greene King, one of Britain's largest pub companies, has announced plans to sell up to 150 pubs and convert 300 others into a separate division as part of a major restructure. Chief executive Nick Mackenzie blamed the decision on soaring costs and changing consumer behaviour, describing the current cost environment as “unprecedented”.
The company, which owns brands such as Greene King IPA and Old Speckled Hen, will put the 150 pubs up for sale in March. Of the 300 pubs being shifted into a new division, half will become leased or tenanted establishments, while the other half are earmarked for disposal. The move is part of a regular portfolio assessment, according to Mackenzie.
Mackenzie pointed to rising employment costs, increased cost of goods due to global events such as the Ukraine war and tensions in Iran, and business rates as key factors. He criticised the government's business rates system, calling for reform to rebalance taxation on the sector. Greene King has also introduced an AI-powered virtual assistant named “Charlie” to handle phone calls at select pubs, including in London.
Despite the challenges, Greene King reported a 3.6% increase in revenue to £2.5bn last year, with an operating profit of £94m, a significant turnaround from a £16m loss the previous year. The company is investing £40m in a new brewery in Bury St Edmunds, set to launch next year, and has poured £10m into its London portfolio, including upgrades to venues like the Blue Posts in Soho and The Railway Tavern on Liverpool Street.
Greene King operates roughly 2,600 pubs across Britain, with 840 under direct management and the rest under franchise or tenancy agreements. Mackenzie expressed concern that Brits may cut back on pub visits as consumer confidence hits a two-year low, but noted that this summer's World Cup could boost takings, with extended opening hours promised by the government.
