M&B invites franchisees to bid for their pubs

Mitchells & Butlers (M&B) chief executive Adam Fowle has invited the company's franchisees to put in offers to buy the freeholds of their pubs.

Fowle has confirmed that its 90-strong franchise division is non-core as it seeks to double the size of six key drive brands within five years.

He said: "We have no ideological issue about selling pubs in singles. It's obviously easier selling pubs in groups but it's about getting best value where were can."

Fowle said franchisees stand every chance of buying their pub freeholds where they can submit good offers quickly.

He added that the sale of 300 pubs, being conducted by Sapient Corporate Finance, had already attracted interest from trade and other buyers.

The franchise division's pubs are the best quality package of tenanted poubs in the sector with average weekly turnover per pub of around £13,000 — between two and three times the tenanted sector average.

It has a number of pubs in the Home Counties where turnover is as high as £40,000 per pub per week.

Existing franchisees include some of the sector's best known multiple retailers: Paul Salisbury and Paul Hales, of Lovely Pubs; Nick Pring and Malcolm Heap, of Realpubs; Chris Gerard of Innventure; Jon and Paula Briscoe, of Esp8, and Chris Bulaitis of Ever So Sensible.

The franchise division of M&B is likely to be worth between £80-90m in its totality.