FEATURE: Entrepreneurship and flexibility steering operators towards Stonegate models

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During the past 18 months, Stonegate Group has accelerated a transformation strategy that has seen it evolve from a traditional pub company into what chief executive David McDowall describes as a “partnership-led portfolio built for the future”.

Currently, the group operates thousands of venues across five operating models, ranging from leased & tenanted pubs to managed sites and self-employed operator agreements. The strategy is designed to ensure each pub is matched with the operating structure best suited to its location, customer base and growth potential.

“We operate some of the best pubs, bars and venues in the country, supported by exceptional talent across our business,” says McDowall.

“In a constantly evolving market, I’m incredibly proud of the progress we’ve made in transforming Stonegate into a partnership-led portfolio built for the future. Our performance demonstrates the strength of that strategy and, above all, is testament to the brilliant colleagues, teams, partners and operators who bring it to life every day.”

The scale of the business allows Stonegate to take a different approach to different sites. Across its estate are more than 3,000 leased, tenanted and commercial property venues, 656 Craft Union pubs and 320 managed sites, giving the company a breadth of operating models unmatched elsewhere in the sector.

Rather than seeing individual structures competing with each other, Stonegate believes their coexistence is one of its biggest strengths.

“The group continues to evolve and innovate to ensure that our pubs, bars and venues can thrive in the communities they serve,” says McDowall.

“Our distinct operating models allow us to partner with entrepreneurial operators in different ways, whether that be giving people the freedom to run their pub in their own way through either our partnership or operator-led models, or through a structured model in our managed estate.”

Rise of the entrepreneur

One of the clearest themes emerging from Stonegate’s strategy is its growing emphasis on entrepreneurship.

According to the company, publican tenure is at its highest level on record, while demand from prospective operators continues to accelerate.

During Stonegate’s 2026 financial year, it received 13,000 applications from prospective publicans and a further 4,750 applications from people interested in opportunities within its Craft Union camp (operator-led model).

The figures suggest despite well-publicised pressures facing hospitality businesses, running a pub is still an attractive proposition, particularly when operators feel supported and have access to established infrastructure.

Stonegate says this support has become increasingly important as independent operators face rising wage costs, compliance requirements and administrative burdens.

Within its Pub Partners division (leased & tenanted), the company works with more than 100 multi-site operators, many of whom started with a single venue before expanding.

The group has also doubled its level of capital investment over the past year, supporting publicans looking to grow their businesses and improve venues.

Why different models matter

Historically, many pub companies were strongly associated with a particular operating model, whether managed, leased or tenanted.

Stonegate’s approach is different, it argues. The company says customer expectations increasingly focus on the people operating a venue rather than the ownership structure behind it. As a result, matching skilled operators to the right sites has become a key priority.

“Guests increasingly value the people behind the bar over the name above the door,” says McDowall.

“By partnering with entrepreneurial operators, we’re building pubs that are more resilient, community-driven and adaptable to evolving guest habits.”

That strategy appears to be yielding results. Stonegate says Craft Union delivered double-digit profit growth during the third quarter of this year, while its Pub Partners business continues to generate consistent profit growth across key performance indicators.

At the same time, the group remains committed to a managed estate that includes some of the UK’s most recognised late-night and high street brands – including Slug & Lettuce, Be At One and Popworld.

McDowall points out managed venues continue to perform particularly strongly during major sporting events, payday weekends and late-night occasions, demonstrating no single operating model works for every pub.

Looking ahead

For prospective operators assessing their next move, Stonegate believes the breadth of opportunities available within its portfolio is one of its strongest selling points.

From first-time publicans looking for support and experienced multi-site operators seeking the chance to expand, the business aims to offer a route into operating sites that suits all types of skillsets and ambitions.

Its continuing investment strategy, combined with the ability to move venues between models when market conditions change, reflects a belief that flexibility and entrepreneurship will play an increasingly important role in the future of the sector.

For Stonegate’s, the message remains simple: there is no single blueprint for running a successful pub. The challenge, and opportunity, lies in finding the right model for the right operator.