Nick McKenzi, CEO of Grene King, warned that high business prices and employment costs are putting great pressure on a sector in the UK pubicman, and called on the government to “settle the stadium” and provide meaningful reform by 2026.
Speaking after the October budget, which made major tax changes to hospitality companies, McKinsey said that Green King expects to overcome approximately 50 million pounds at additional costs each year. He also revealed that the increase in national insurance and that the minimum wage will add 24 million pounds annually – a number that may double when it includes changes in full wages.
“The industry has paid an inconsistent amount of prices for many years,” McKenzi said. “We urge the ministers to work with us to create a more just system – it provides a real and permanent change in 2026.”
The Labor Party has pledged two permanent levels to measure commercial prices for hospitality, entertainment and retail trade with classification values less than 500,000 pounds, starting from 2026-27. But McKenzi warned that companies need certainty and support now to protect jobs and investment.
Green King runs 2600 bar all over the United Kingdom, including 878 managed bar and 1114 tenant and rented locations, along with two beer factories. Its portfolio also includes 580 intended bar under trademarks such as Hungry Horse, Chef & Brewer, Flaming Grill and Farmhouse Inns.
Despite the pressures, Grene King recorded a 3.2 % growth per year to December 29, reaching 2.45 billion pounds, with strong Christmas trading and events like EURO 2024 Performance. The modified operating profit increased by 6.4 % to 198 million pounds, but legal numbers tell a different story.
It has twice the twice of 208.5 million pounds of non -cash -related monetary and evaluating the company’s goodwill to a legal operation of 16.4 million pounds, compared to the profit of 167.2 million pounds annually. Pre -tax losses reached 147.1 million pounds, a decrease of 45.2 million pounds in 2023.
McKenzi said that these obstacles not only reflect uncertainty in the market, but also reflects government policy decisions, which “have increased our costs significantly.” A sharp rise in bond revenue added more pressure on property assessments.
While Grene King continues to invest and update, Mackenzie stressed the need to take government measures to support a vital industry. “We need policies that encourage growth – investment liberalization, reduce red tape, and ensure that bars remain in the heart of our societies.”
Founded in 1799, Green King is famous for beer including Green King, Abbot Ale and Belhaven. The company was obtained in 2019 by CK Asset Holdings, which is controlled by Hong Kong Billionaire Li Ka-SHing, in a deal of 4.6 billion pounds.
The post Greene King boss calls for business rates relief as budget adds £50 million in annual costs first appeared on Investorempires.com.
