Greene King focuses on its food offer to balance smoking bans

Brewer and pub operator Greene King is overhauling its food offer in preparation for the looming English smoking ban.

The group – which today unveiled record results for the year to 30 April  - believes it is in a good position to weather smoking bans because more than 90% of its estate has outdoor space for smokers.

However, it is also beefing up its menus after overall sales in its Scottish pubs fell after the start of the smoking ban in March, despite an uplift in food sales.

Food now accounts for 27% of sales at Greene King's managed division, the Pub Company, and in a bid to increase this still further the company relaunched 14 of its menus during the year, introducing late-night offers of pizzas and hotdogs, as well as deli boards and tapas dishes at certain sites.

Greene King has also taken steps to improve food quality and avilability across its 1,354-strong tenanted estate, Pub Partners, with the launch of the Food Made Easy and Time for Wine programmes.

Full-year figures for the group included contributions from both Ridley’s, which was acquired in June 2005, and Belhaven, which joined the fold in October of last year.

The enlarged Greene King business boosted pre-tax profits by 25% to £119.6m (2005: £95.7m), and turnover by 16% to £818.6m (2005: £707.7m).

Since the year end, Greene King has tabled a recommended £271m offer for Midland brewer and pub company Hardys & Hansons.

Pub Company (managed pubs)
Sales: £516.5m (+ 4%)
Operating profit: £102.1m (+9%)
Average operating profit per pub: £130,000+ (+11%)

Pub Partners (leased and tenanted pubs)
Sales:  £147m (+18%)
Operating profit: £64m (+19%)

Brewing Company
Sales: £90.3m (+4%)
Operating profit: £17.8m (+16%)

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By Angela Frewin

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