Greene King, one of Britain's largest pub chains, has announced plans to sell 150 of its pubs, with another 300 sites facing restructuring, as rising costs and shifting consumer habits lead to fewer Britons going out for a pint.
Unprecedented costs hit hospitality
The company's chief executive, Nick Mackenzie, cited "unprecedented" costs and "changing consumer behaviour" as the driving factors behind the decision. The sale is expected to take place in March, as part of a broader strategy to streamline operations amid a challenging economic environment.
Mackenzie noted that soaring energy bills, increased food and drink prices, and higher wages are squeezing margins across the sector. Meanwhile, consumers are cutting back on discretionary spending, including visits to pubs, as the cost-of-living crisis persists.
Greene King operates over 2,700 pubs, restaurants, and hotels across the UK. The planned sale of 150 pubs represents a significant downsizing, though the company has not disclosed which locations will be affected.
Industry-wide challenges
The hospitality industry has been under severe pressure since the pandemic, with many businesses struggling to recover from lockdowns and subsequent economic shocks. Rising inflation and interest rates have further dampened consumer confidence, leading to reduced footfall in pubs and restaurants.
Industry bodies have warned that more venues could close unless the government provides additional support, such as reduced VAT rates or business rate relief. Greene King's announcement is seen as a bellwether for the sector, with other chains likely to follow suit if conditions do not improve.
The company has assured customers that it will work to minimize job losses and find new operators for the affected pubs where possible. However, the restructuring of 300 sites could lead to changes in staffing and operations.
This is a breaking news story, and more details are expected to emerge in the coming days.
