Greene King rolls out Meat & Eat franchises
The franchise model, which was tested earlier this year in the suburban locals market, will see pubs that sign up to the scheme operate under the banner Meet & Eat Pub & Grill. The company said the business format franchise would, in return for their investment, offer prospective franchisees “a pub on a plate ready to trade right away”.
PMA understands that entry costs are £85,000 for the franchise package, with a trade deposit of £5,000 and working capital of £15,000, variable depending on the particular site.
It is thought that in return the franchisee can expect to generate an estimated annual profit of £40,000-£45,000.
The franchise agreement is for 10 years on a rolling basis. The company supplies the food and drink, allowing prospective franchisees to take advantage of the company’s scale and buying power.
Gaming machines are supplied by Greene King on a 50:50 profit split, while the company will also pay 50% of the ongoing cost for Sky, music and entertainment systems. In conjunction with Greene King, a fit out will be completed to a point were a site is ready to trade, with the company looking to the franchise owner for a proportion of the cost.
Rival Marston’s has led the way in the pub sector in terms of looking at the franchise route for marginal pubs, with the launch of its Retail Agreement offer. At the start of June, the company won British Franchise Association accreditation for the scheme.
