Greene King shakes up tenanted and leased pub operation

Greene King has split its leased and tenanted business into two divisions, mirroring changes made to its managed pub operation last year.

The brewer and pub operator has placed 400 mainly leased pubs into the newly-created Independence Pub Company, with the remaining 1,060 tenanted pubs retained under the existing Pub Partners division.

Greene King said the changes had been introduced to better support its tenants after it realised that managed sites were responding much more quickly to cultural changes.

As part of the overhaul, each regional manager within Pub Partners will now look after 44 pubs rather than 60, to allow them to provide greater support to tenants.

Within Independence, the ratio will remain at 60 as the pubs within the division are typically run by more experienced publicans requiring less support.

David Elliott, managing director of Pub Partners, said: "It's all about the evolution of the pubco model. Pubs have changed massively over the last five years and for any pub company to stand still would be ridiculous and damaging."

Greene King has also introduced a new three year tenancy and 10-year lease agreement and will offer some free of tie, right to buy and fixed rent deals to prospective licensees.

Last year, Greene King split its managed pub operation into Destination and Local divisions.

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By Chris Druce

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