The report not only looked great, it offered lots to take on board so you can improve your pub or bar business – but what were the key aspects?
Here, we look at five of the key elements shaping the world of pub companies – of course, there’s plenty more to be gleaned by taking a look at the content yourself.
1. Wages represent the largest cost increase
During the past year, a huge 6.7% hike to the national living wage (NLW) has heaped pressure on employers with hospitality bearing the brunt as collective prices has increased too.
In an exclusive survey by The Morning Advertiser – the results of which can be seen in The MA Top 100 Pubcos report – some 59% of respondents cited a rise in wages as the biggest cost increase during the past year.
Utilities, drink and food prices then business rates followed suit picking up 13.5%, 11% (drinks), 7% (food) and 6% respectively.
The announcement of a 6.7% jump in wages was announced in Rachel Reeves’ Autumn Budget of October 2024 and came into force in April this year.
It has seen the NLW increase from £11.44 to £12.21 an hour, which the Government estimated is worth £1,400 a year for an eligible full-time worker.
The national minimum wage (NMW) for 18 to 20-year-olds also rose from £8.60 to £10 an hour – a lift of more than 16% and the largest single increase on record.
This £1.40 rise will mean full-time younger workers eligible for the rate will see their pay boosted by £2,500 next year.
The move also marked the first step towards aligning the NMW and the NLW to create a single adult wage rate, which would take place over time, according to the Government.
2. Stonegate is still the largest pubco
Stonegate operates around 4,370 pubs across the UK, which is close to 2,000 more than its nearest rival.
Based in Solihull, Birmingham, and led by ex-BrewDog man David McDowell, the pubco has been the largest for a number of years mainly down to its acquisition of EI Group, which was agreed in July 2019 but not approved by the Competition Markets Authority until February 2020.
But Covid was, of course, a nigh-on impossible situation that saw Stonegate lose £746m as pubs were forced to shut during the pandemic.
Despite being a giant, it remains agile as demonstrated by the fact in August this year, it made the 200th conversion of its managed pub estate into its to leased and tenanted and operator-led models, which includes the Craft Union model, as part of its transformation strategy.
Stonegate is always eyeing up potential acquisitions as shown in July when it took the reins of the 15-strong Frontier Pubs group.
3. Greene King operates the smallest percentage of managed pubs of the ‘big six’
Just six pubcos have to work within the structure of the office of the pubs code adjudicator (PCA).
The PCA ensures fairness for licensees who are effectively in charge of their own business within the set parameters of each pubco.
Greene King, which operates a total of 2,623 pubs, only has 86 sites – under its Hive and Nest models – that are managed businesses.
This means just 3% of its total number of pubs are under a managed model.
At the other end of the scale, Marston’s 788 managed sites from its total of 1,333 pubs means 59% of its estate is managed.
Its four basic models of managed partnership are Your Local, Community Wet, Community Food and Pillar.
Almost a quarter (24%) of Punch Pubs’ 1,268-strong estate operates under its managed partnership – but unlike rivals, it does not insist on a tie of any kind to the products it can sell.
The models in the 300-strong managed arm are Our Local, Mighty Local, Fireside and MC2.
Meanwhile, Admiral Taverns (9%) and Star Pubs (8%) have lower percentages of managed pubs than most.
Admiral’s 222 sites of its 1,422 pubs operate via its Proper Pubs arm that is almost entirely wet-led with just crisps, nuts and scratchings as edible options.
Star Pubs’ Just Add Talent model accounts for 300 sites from its total of 2,400, which often gives customers access to showing sports on TV along with food and drink options according to whether the pub sits in its Community, High Street or Premium model.
4. April was the best month in H1 2025 for lfl sales
Data from the CGA RSM Hospitality Business Tracker showed that while January 2025 was, somewhat predictably, a weak month for sales in for managed hospitality groups, April was the best of the first six months of the year.
Driven by warm weather, all hospitality groups were collectively 4.2% ahead of April 2024 sales while pubs reported a 9.1% rise in like-for-like (lfl) sales with consumers being encouraged by the sun to get into pub gardens and terraces.
The impressive month saw a 9.1% boost in lfl sales versus the April 2024 – yet no month in the first half of 2025 fell into negative sales when compared to the year before.
March saw a rise of 3.6%, February 1.7%, June 1.2% while May (0.5%) and January (0.1%) were pretty much flat.
5. Good weather creates sales
More exclusive research from The Morning Advertiser showed the most important factor for those who saw an increase in trade was the great weather the UK has enjoyed this year – according to 34% of survey respondents.
Investment made in their sites was the next most important factor for 31%, an improved food offer said 27% with sports (6%) and a beer/cider festival (2%) for other pub operators.
There has been plenty of support for the statement about the weather throughout 2025 from many operators and researchers.
Great weather boosted sales in early July according to CGA by NIQ’s Daily Drinks Tracker while Mitchells & Butlers put a boost in trade down to the climate too.
Star Pubs made a huge £4.5m investment into improving its outside spaces at 171 of its sites.
Star Pubs property director Chris Moore said at the time: “Even small unassuming spaces can be converted into attractive outdoor areas while standard gardens can be transformed with designs that send sales soaring in good weather.”
Former model Jodie Kidd, who operates the Half Moon, in Kirdford, West Sussex, praised the sunshine when saying how much help the sector needs.
Kidd said: “I had thank Mother Nature for giving us a gorgeous spring. As soon as the sun came out and people could sit outside, we could double our covers. It was like everyone was coming out of hibernation and it made such a difference.”
- To gain free access to The MA Top 100 Pubcos 2025 report, simply click here, fill in a few details and it’s all yours.
