170 Greene King pubs at risk of sale or closure in the UK

The pub firm has assessed their 2,500 pubs, restaurants and hotels and today [March 18] unveiled their plan up to 2030.

It notes 150 have been earmarked for ‘potential sale over the medium term’ and two per cent of their 1,500 managed pubs – which would be around 20 – have been identified for closure.

It’s not clear which 170 pubs are planned for sale and closure but they claim 150 aren’t considered at ‘immediate risk of closure’.

Why are so many pubs closing?

The plan has been unveiled as news broke Zoe Bowley is stepping down as managing director of Greene King Pub.

CEO Nick Mackenzie believes the changes will set up the firm to ‘deliver sustainable profitable growth’ and ‘invest effectively in our core portfolio’.

He said Zoe ‘has decided that now is the right time for her to step down’ from Greene King.

The changes also include 150 directly managed pubs being converted into leased, tenanted or franchised venues.

Nick said: “We are confident that 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 and capitalise on our investment in digital and loyalty.

“It also allows us to invest effectively in our core portfolio and most importantly continue to deliver exceptional experiences for our customers.

“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.”

Greene King’s strategy also includes 150 directly managed pubs being converted into leased, tenanted or franchised venues.

They aim to grow their market share and improve margins by ‘creating a culture of efficiency’ through use of AI and tech investment.

The pub giant was founded in 1799 and currently employ around 40,000 staff.

Molly Monks F.I.P.A., an insolvency specialist at Parker Walsh , said: “Hospitality sites are continuing to struggle due to operating costs rising sharply in recent years. Energy bills, business rates, wage increases and supply chain pressures have all squeezed margins for pubs and bars. 

“On top of that, the price of food and drink is rising across the supply chain, and with many households continuing to feel a financial squeeze, we’re seeing less people eating and drinking out. This change in customer habits is causing the hospitality industry to take a big hit in earnings.

“Greene King’s decision to put 150 properties on the market and move other sites into franchises and other business units is to be expected in this economic climate, as the pub giant is forced to reassess its assets and isolate any potential risk.

“But this decision from the country’s leading pub company should start ringing alarm bells for many because as long as costs continue to rise and margins continue to shrink, we’re likely to see more moves such as this across the hospitality industry.”