Greene King vs Spoons: Who is winning the great British pub battle?
There are few well-populated areas of the UK where you can’t find either a Greene King or JD Wetherspoon pub.
The two titans of the British pubs industry together operate thousands of locations each across the country and are staples of most urban areas.
Both are major contributors to the UK economy – providing employment and helping to keep alive the great British pub culture.
But this week Greene King hit the headlines after its chief executive issued an urgent plea to the government for help after his group slumped to a near-£150m loss in 2024.
Nick Mackenzie revealed Greene King’s results had been impacted “by the outlook for the industry, which was compounded by decisions made in the government’s Budget which have dramatically increased our costs”.
He added that the government should “urgently introduce” business rates reform, reduce regulation and the cost of doing business to “ensure that our critical sector is protected and pubs remain at the heart of communities UK wide”.
Following the comments, City PM has taken a look at the financial health of both Greene King and JD Wetherspoon and what the future could hold for them both.
Greene King slumps into the red
Accounts filed with Companies House this week revealed that Suffolk-headquartered Greene King fell to a pre-tax loss of £147.1m during its latest financial year, having posted a profit of £45.2m in 2023.
The group, which operates around 2,600 pubs, restaurants and hotels across England, Wales and Scotland, however saw its revenue increase from £2.37bn to £2.45bn over the same period.
The results came after the cost-of-living crisis and no major international football tournament being staged in 2023 led to profit being slashed in half at Greene King during its prior financial year.
On its future, the pub giant pointed to plans for a £40m brewery in Bury St Edmunds being given permission in January this year. The site is expected to be operational in 2027.
The group’s Greene King pubs increased their revenue from £938.4m to £966.5m in 2024 while their operating profit dipped from £132.5m to £120.2m.
The number of Greene King pubs the group operated in 2024 fell from 898 to 878.
But while sales at the group’s destination brands division one from £787.4 to £799.2m, it went from making an operating profit of £51.8m to a loss of £111.5m.
That division includes Hungry Horse, Chef & Brewer, Farmhouse Inns and Flaming Grill as well as the Wacky Warehouse play brand.
The number of locations the group operated in the year within that division also decreased from 600 to 580.
Through its partnerships and ventures, the group generated a revenue of £447m, up from £420.9m, while its operating profit also grew from £45.3m to £47.1m.
Sales at Greene King’s brewing and brands arm also increased from £228.7m to £237.8m but its operating profit slipped from £21m to £18.1m.
Losses generated through group’s corporate activities grew in 2024 from £83.4m to £90.3m.
Greene King can trace its roots back to 1799 and was listed on the London Stock Exchange until it was acquired in 2019 by Hong Kong property developer, CK Asset.
JD Wetherspoon’s sales pass £2bn for first time
By contract, JD Wetherspoon is a significantly younger rival to Greene King – having been founded by Sir Tim Martin in 1979.
The London-listed giant reported sales of more than £2bn for the first time in its history in the financial year to 28 July, 2024, a rise of 5.7 per cent.
Its pre-tax profit also jumped by 73.5 per cent to £73.9m during the 12 months.
JD Wetherspoon operates more than 800 pubs across the UK and has previously stated its aim to increase that to around 1,000.
The company did not resume paying a dividend, which it was not expected to do until it can return to its pre-pandemic pre-tax profit of at least £100m. Analysts expect this to resume in 2026 or 2027.
Being a listed company, JD Wetherspoon has to publish its financial figures for every quarter while Greene King, being privately owned, is not required to.
In March, JD Wetherspoon posted a revenue of just over £1bn for the first half of its current financial year, a rise of 3.9 per cent.
However its pre-tax profit fell by 8.6 per cent to £32.9m over the same period.
At the time, Sir Tim Martin said the increases in National Insurance and labour rates will cost the company around £60m extra a year, amounting to approximately £1,500 per pub, per week.
Earlier this month, JD Wetherspoon revealed its sales increased by five per cent during its third quarter.