Marstons rolls out new pub model

Marston's rolls out new pub model

Marston's plans to invest more than GBP25m (US$37m) in order to transform the business model of around a third of its pubs.

Marston's said today (24 June) that it will increase the number of its pubs operating under a new Retail Agreement to 600, following a successful trial with 78 pubs. 

The UK brewer said that it will spend GBP50,000 per pub, which means a total spend of around GBP26m.

The company said that it expects to recoup an extra GBP6m per year in profits from the 600 pubs.

Marston's has developed the Retail Agreement as an alternative to the traditional contracts between pub companies and tenants, following criticism of the pub-tie model from campaigners and politicians last year.

Under the Retail Agreement, pub tenants have the freedom to run their outlet as an independent business and are only required to pay a security deposit as an entry fee. Marston's has said that tenants will receive levels of support to match the managed pubs in its 1,680-strong estate.

Around 80% of a Retail Agreement pub's annual turnover will go to Marston's.

In April, Marston's said that it was “on track” to meet expectations for its current financial year.