Rollo also estimates that the enlarged group might have to sell another 300 tenanted pubs and up to 200 managed pubs. He said the incorporation of a casual dining/cafe brand into the company’s managed estate would make sense, to improve its all-day and non-alcoholic offer.
He said: “Previous transactions, such as M&B’s acquisitions of Allied Domecq, Whitbread, and Orchid pubs have targeted very high sales uplifts, 40%-50% in these examples (though not always achieved). We don’t think Spirit offers such potential given not all its pubs can be converted to a Greene King brand.
“But we think the company will reduce its 15 brands to seven or eight. We assume stand-alone brands like Loch Fyne will continue, leaving similar brands to be rationalised.
“In the Premium segment, this would be between Metropolitan Pub Company and Taylor Walker; in the mainstream food-led pubs, between Chef & Brewer, Old English Inns and Eating Inn; and in the value segment between Hungry Horse, Fayre & Square, Flaming Grill, Meet & Eat and Flame Grill.”