Pub operator Marston’s, which currently has 1,339 venues across the UK, has revealed plans to introduce five new pub formats as the business seeks to become a “high-margin, highly cash-generative local pub company”.
Outlining its new position on Capital Markets Day (CMD) on Wednesday, the proposal will see the company shift away from brewing to focus entirely on pubs in the differentiated formats of ‘locals’, ‘locals sport pub’, ‘adult dining pub’, ‘family pub’ and the ‘two-room pub’.
The strategy’s five “key value drivers” include Marston’s digital transformation; targeted investments to create five differentiated pub formats; and leveraging its targeted mergers & acquisitions synergies.
Marston’s said this new strategy “will ensure we drive guest demand and deliver amazing pub experiences whilst maintaining our focus on best-in-class operations and cost efficiencies to expand the group’s profitability and cash generation profile”.
Justin Platt, Chief Executive of Marston’s, said:
“Marston’s is embarking on a new and exciting chapter as a pure play hospitality business. At today’s 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.”
Subsequently, Marston’s said it expects to deliver revenue growth ahead of the market in the near-to-medium-term future.
Marston’s said these targets are underpinned by its strong balance sheet and disciplined capital allocation framework.
