Greene King considers job cuts as soaring costs squeeze pub sector

"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"."

"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"

Greene King is reviewing head office and central functions and may cut up to 100 roles as it faces rising taxes, higher operating costs and softer consumer spending. The company operates about 2,600 pubs across the UK and already undertook major job reductions in 2023. Energy, food and labour cost increases have squeezed margins. Changes to employer national insurance contributions and expected business rate rises add pressure despite a government support package. Alcohol consumption has softened as households tighten budgets. Sales rose 3.2% to £2.45bn in 2024, yet the company reported a pre-tax loss of £147.1m.

Read at Business Matters