The Suffolk-based pub operator and brewer announced the new estate strategy today (Wednesday 18 March), adding the move would set the business up for future growth.
As part of the estate evaluation, the company has identified around 300 managed sites that would be better served under different models.
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Greene King estimated roughly half of these pubs would be converted to leased & tenanted or franchise venues within its Pub Partners division. It added these sites would be transferred to a new business unit, with a simplified model, while the transition takes place.
The remaining 150 pubs will be evaluated for potential sale over the medium-term. At the same time, Greene King has identified a small number of sites for closure, representing less than 2% of its managed estate, in line with the group’s typical annual activity.
Reinvesting funds
Greene King, which runs around 2,500 sites across the UK, said the funds raised from disposals would be reinvested into its core estate.
It added optimising the managed portfolio left the business well positioned to deliver its 2030 strategy of enhancing customer experience, growing market share and improving margins in an increasingly dynamic environment.
The changes also enable the company to adopt a centralised operations structure, led by Jodie Tate, alongside an integrated commercial and digital structure, led by Clair Preston Beer. This includes a £35m initiative to drive customer loyalty as part of its investment into tech.
Greene King CEO Nick Mackenzie said: “We are confident 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 – which leverages our strategically important Pub Partners business – 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.”
New strategy
In addition to the new strategy, Greene King also announced managing director of Greene King Pubs, Zoe Bowley, has decided to step down after three years in the role.
Commenting on Bowley’s departure, Mackenzie added: “I would like to thank Zoe for her leadership, counsel and the important role she has played in strengthening both our Greene King pubs over the past few years and before that our Metropolitan Pub Company business.
“Zoe has decided now is the right time for her to step down but she will continue to support the business through a period of transition. Zoe will always be part of the Greene King family, and I wish her every success in the future.”
This comes after reported last month that Greene King was looking to axe around 100 jobs in its head office and central functions teams amid rising taxes and persistent cost pressures.
Moreover, the company also recently shared plans to expand its Pub Partners estate, with 30 new openings planned this year, after reaching a milestone of 100 pubs in the division.
