Greene King mulls sale of 150 pubs in estate shake-up
Greene King, Britain’s second-largest pub group, is considering the sale of 150 pubs, while around 20 have also been earmarked for closure.
The Suffolk-based pub operator and brewer has announced plans to shake up its estate. Around 150 venues at risk of closure, while another 150 set to be converted into tenanted or franchised pubs, as the sector battles rising employment costs, high inflation and a drop in consumer demand.
The company has evaluated its entire portfolio of around 2,500 pubs, in what it says is a bid to double down on investment, growth and profitability.
As part of this assessment, it has flagged around 300 sites that would be better suited to a different operation model. Around half of these will be converted to leased and tenanted, or franchise venues, under its Pub Partners division.
Times of transition
Greene King Pub Partners recently celebrated a major milestone of hitting 100 franchise pubs – just four years after the pub company launched its first franchise concepts, Hive Pubs, in 2021. The move to add more venues to its Pub Partners division aligns with goals to grow its franchise business in 2026.
The 227-year-old pubco, which runs around 2,500 pubs across the UK, said these sites will be transferred to a new business unit with a simplified model while the transition occurs.
The remaining 150 pubs will be evaluated for potential sale over the medium-term. Greene King has also earmarked a number of sites for closure, making up less than 2% (around 20 pubs) of its managed estate.
Long-term focus
The money raised from disposals would be ploughed into its core estate, the company said.
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.
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“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.”
Pubs MD to step down
Additionally, the brewer revealed that its managing director of pubs, Zoe Bowley, is set to step down.
Bowley, the former managing director of PizzaExpress, initially joined Greene King in an interim role in October 2023 to help develop its Metropolitan Pub Company division and lead its Crafted Pubs business. In September 2024, she took on the position as a permanent managing director of Greene King Pubs.
Speaking to Propel, Mackenzie said: “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 that 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.”
Franchise expansion
Greene King is also looking to expand its franchise operations into Wales and the Southwest of England for the first time through a pipeline of openings set for 2026. New franchise investments and openings include Millwrights in Aylesbury, The Freemasons Arms in Wigan and The Flag in Egerton.
This expansion will be facilitated by the growth of the Greene King Pub Partners franchise team, through the hiring of two new Business Development Managers (BDMs) to cover the expanded geography of the franchise business and the internal promotion of a franchise BDM to Operations Manager, leading a team of five BDMs.
