Greene King Pub Partners has launched a Franchise style agreement this week following a highly successful trial of nine pubs. The franchise concept will be rolled out across 50 pubs within the leased and tenanted business over the next twelve months and focuses on community town and suburban sites with opportunity for market share growth. Developed around franchise principles, the concept provides a proven pub package based on Greene King’s retailing “know how”.
Speaking about the launch, managing director for Pub Partners, Simon Longbottom said, “We developed this concept over the last 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 sales of on average between £7-11k per week and a minimum franchisee income of £45k per annum. It’s all about sharing the risk and return”.
Potential franchisees can benefit from the business opportunity with a minimum start up investment of £30,000. The turn key approach provides a pub on a plate with a high level of support for the franchisee including:
- 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 their 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.
Adding, Longbottom said, “We’re looking for operators with strong retailing skills, who are self motivated and can create and build a successful team dedicated in delivering the highest standards of customer service within their pub. Each franchisee undergoes 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.
The support this formula provides allows franchisees to take on a successful concept with the assurance they’ll be able to make a minimum of £45,000 income per year. The franchisee pays a below market rent and then a franchise fee based on a percentage of sales. The higher service and standard scores they achieve the lower the percentage they pay. So it’s very much a joint venture approach – allowing costs to the business to fluctuate with turnover and delivery of great quality service rewarded. The franchisee has the benefit of knowing they’re working with the full backing of Greene King’s “know how” and that we both have skin in the game”.
Greene King has taken advantage of its managed house food cost prices and food development expertise to devise a menu offering value for money and competitive pricing for the pubs. All pubs receive full kitchen packages, menu and promotional POS.
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. David said, “This idea is fantastic as it allows you to walk straight into a pub and operate it successfully. You complete the training and follow the operating procedures and you have a busy pub. Everything has been developed to serve the community market, with the pricing set exactly how you need it. It’s operating your own business within a certain framework. That’s not restrictive but it gives you the support you need so the pub remains successful”.
Greene King Pub Partners is in discussions with the British Franchise Association to gain accreditation for their franchise concept. Currently the agreement is for 6 years with an 18 month break clause but this may change with franchise accreditation. All those pubs on the existing 6 year agreement will be offered the new franchise agreement. Pubs will be advertised on the GreeneKingpubs.co.uk website.
Pictured: David Knott and Robert Lamb of the Orange Tree and internal pictures of the Franchise concept pub.
Press contact: Elaine Beckett, PR & Communications Manager, Greene King Pub Partners, Tel: 07974 132844.