Greene King is weighing up a fresh round of job cuts as Britain’s second-largest pub chain grapples with rising taxes, higher operating costs and mounting pressure on consumer spending.
The 227-year-old company, which operates around 2,600 pubs across the UK, is understood to be reviewing its head office and central functions, with up to 100 roles potentially affected. No final decision has been taken.
The move would mark the second major restructuring in under two years. In 2023, Greene King cut significant numbers of head office and field-based staff, saying the overhaul was necessary to help the business “thrive in challenging times”.
Founded in 1799 by Benjamin Greene in Bury St Edmunds, the company is one of Britain’s oldest brewing and pub groups, known for brands including Greene King IPA, Old Speckled Hen and Abbot Ale. It operates a mix of managed pubs, which it runs directly, alongside leased and tenanted sites.
Like much of the hospitality sector, Greene King has faced a sharp escalation in costs. Energy bills, food and drink ingredients and wages have all risen significantly in recent years.
Industry leaders have been particularly vocal about changes to employer national insurance contributions (NICs), including the lowering of the threshold at which they are paid, a move that disproportionately affects sectors reliant on part-time and lower-paid staff.
Many pubs are also bracing for higher business rates from April. While the government has introduced a support package, campaigners argue it may not be sufficient to offset the burden.
At the same time, alcohol consumption in Britain has softened as households face tighter budgets and shifting health trends.
In December, Greene King’s chief executive Nick Mackenzie warned of a “constant layering of costs” and urged ministers to provide further support for the sector.
Despite a 3.2 per cent increase in sales to £2.45bn in 2024, Greene King reported a pre-tax loss of £147.1m in its latest accounts. Adjusted operating profits stood at £198m. The company employed around 1,000 head office staff during the year.
Greene King was taken private in 2019 in a £2.7bn deal by Hong Kong-based CK Asset Holdings, owned by billionaire Li Ka-shing.
The group has continued to invest in its estate, including plans to relocate its historic Bury St Edmunds brewery to a new £40m site by 2027, where it will produce both traditional cask ales and newer beer ranges.
Greene King is not alone in cutting costs. Rival Stonegate Group, Britain’s largest pub operator and owner of the Slug & Lettuce chain, has also appointed advisers to restructure its operations. It has already cut 95 roles, with further reductions under review.
Stonegate, owned by private equity firm TDR Capital, is reportedly considering selling a package of up to 1,000 pubs to reduce debt and has been linked to a potential £1bn valuation.
For Greene King and its peers, the challenge is clear: balancing investment in heritage brands and estate upgrades with the harsh reality of rising costs and fragile consumer demand in Britain’s pubs.
Read more:
Greene King considers job cuts as soaring costs squeeze pub sector