Marston’s unveils differentiated formats in new strategy
In its capital markets day (CMD), Marston’s revealed it is hoping to grow its enterprise value as a focused pub operator after the disposal of its brewing arm earlier this summer.
The 1,339-strong company, which comprises 30% managed, 55% partnership and 15% tenanted, aims to create a “high-margin, highly cash generative” business, “naturally balanced” to appeal to a wide range of consumers.
These formats are:
- Locals pubs – aimed at regulars and locals, aged between 35 and 64 with a proposition of ‘share good times at your local’ and an indicative share of estate of 23%. Key aspects include a warm and welcoming atmosphere, community engagement, an always on activity calendar and friendly licensee.
- Locals sport pubs – again aimed at regulars and locals alongside entertainment-focused adults with a proposition of ‘big event shared at your local’ and a 20% indicative share of estate. This offer features great viewing areas, market-leading technology, sports activities and a passionate licensee.
- Adult dining pubs – target audience of affluent adults aged 35 to 64, ‘good food, good times’ proposition and 22% share. It includes classic charm, first-class food quality, a range of leading drinks brands alongside relaxed, friendly service.
- Family pubs – families with primary school-aged children is the target audience here alongside a proposition of ‘share good times with all the family’ and an indicative share of estate of 18%. Food and drink for all the family is on offer as well as family events, a children-specific zone and a zoned area that feels more adult.
- Two-room pubs – the target audience is families and pub regulars with the aim of ‘sharing good times for everyone’ and a 17% indicative share of estate. This includes two clearly-defined pub zones, food and drink for all the family, sports activities and a licensee who embraces two pubs in one.
The strategy and financial targets are underpinned by a strong balance sheet, with no material refinancing requirement for at least a decade, alongside a disciplined capital allocation framework focused on enhancing shareholder value, the company stated.
Key drivers
Its strategy centres on five key value drivers:
- Executing a market-leading operating model
- Targeted investment to create the five differentiated pub formats
- Digital transformation
- Expansion of managed and partnership models
- Leveraging Marston’s synergies in targeted M&A
The company also outlined its financial ambition including that it expects revenue growth ahead of the market.
Recent results highlighted Marston’s has reported like-for-like revenue growing faster than the market.
Furthermore, it laid out how the existing finance structure supports the group’s growth and while no immediate action is needed, considerations for a possible restructure remains under review.
It’s ‘revitalised management team’ featured two new roles to the executive team – Ed Hancock as chief development officer, a role created to develop and deliver differentiated formats while Neil Campbell joined the business in September 2024 as chief operating officer, who has previous experience in the leisure sector including at SSP and Whitbread.
New chapter
Looking ahead to 2026-27, Marston’s sees scope for targeted pub acquisitions.
The event highlighted how market dynamics were changing with consumers having more choice in hospitality venues and the increasing importance of lower tempo visits.
Prior to the event, CEO Justin Platt said: “Marston’s is embarking on a new and exciting chapter as a pure play hospitality business.
“At [the] CMD, we are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders.
“With a relentless focus on delivering amazing pub experiences, Marston’s has a real opportunity to drive significant, incremental value in the coming years.
“We are very excited by the opportunities that lie ahead.”
