Greene King to convert 50 pubs to new franchise agreement

16 May 2011 by
Greene King to convert 50 pubs to new franchise agreement

Greene King is to roll out a new franchise-style agreement to 50 pubs within its leased and tenanted division after a successful trial at nine properties.

The programme will focus on community town and suburban sites with an opportunity for market share growth and will allow franchisees a high level of support provided they can start up with a minimum investment of £30,000.

Support includes:
· Wet and dry offer proven to drive market share in the suburban community market
· Clear operating standards and procedures
· EPOS till systems for improved licensee controls
· Sky and electronic music and entertainment systems on a 50:50 cost split
· Rent lower than a standard tenancy with a franchise fee linked to customer service and a 2% marketing charge on net turnover
· Food and drink supplied by Greene King and its channels taking advantage of the scale and buying power of the pub group and providing attractive cost prices
· Capex investment
· Fully supported marketing plans
· Detailed mystery guest and audit programme focused on driving sales

Speaking about the launch, managing director for Pub Partners Simon Longbottom said: "We developed this concept over the past nine months and wanted to make absolutely sure it worked as a model before we launched. We know from our trials that it provides a platform for entrepreneurs to thrive in the highly competitive urban community segment. It's based around the franchise model, capable of multi-site rollout and, we're seeing some great businesses delivering net average sales of £7K to £11k per week and a minimum franchisee income of £45k per annum. It's all about sharing the risk and return".

Longbottom said the company was looking for operators with strong retail skills who can build a team capable of delivering high standards of customer service. Each franchisee will undergo a two-week, fully-funded training programme, alongside on-site pub staff training to ensure the standards and quality of the customer experience match that of the offer.

Pictured: David Knott and Robert Lamb are licensees from the Orange Tree in Braintree, one of the first trial sites within the Pub Partners estate. The pub has seen sales grow from £2.7k per week to over £10k net since the conversion.

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By Neil Gerrard

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