As the popularity of franchising grows, with over 50,000 businesses estimated to operate this way in the UK, many other businesses are looking at franchising as a way to accelerate their growth. At Christie & Co we are seeing this across sectors including retail, hotels, childcare and of course restaurants, in particular fast food. Now we are starting to see it enter the world of pubs.
I’ve been involved in pub sales long enough to recall that back in the mid-1990s Greenall’s, the Warrington brewer who had over 1,000 pubs, introduced a franchise model. Whilst it had ambitions to have over 500 sites, the plans were thwarted when Greenall’s sold out to Scottish & Newcastle in 1999. This was a change to the traditional tenancy model on which pubs have been run for over a hundred years.
Until the 1970s, the UK pub industry was vertically integrated, as 75% of pubs were owned by six major breweries and only three forms of pubs existed: managed, tied tenancy and owner operated “freehouse”. The Beer Orders in 1989 sought to break up this monopoly, with brewers like Greenall’s forced to sell off most of their tenanted pubs. This was an opportunity for investors, known today as Pub Cos, to purchase pubs and rent them out on commercial long leases whilst retaining additional income from supply agreements with brewers.
“Manchise” style agreements have emerged in the last ten years which see the Pub Co retain ownership (and property liability) but not operational control, allowing the operator to develop the business to suit the local demands, which encourages Pub Co landlords and tenants to work closer together, as both will benefit. However, this is not a real franchise in the true sense of the term.
Now in 2025, this may be set to change as once again J D Wetherspoon lead the way in bringing innovation to the pub world. Christie & Co is supporting them, one of the UK’s most recognisable pub companies, in their search for suitable franchise partners as part of plans to grow to over 1,000 sites nationwide.
The search is specifically targeting hoteliers across the UK. As hotel operators look to maximise their profits and utilise spaces, the effort required to develop their bars and restaurants can be viewed as risky in the current environment, and even the best performing hotels can have underperforming bars and restaurants. Wetherspoon franchise partners will have the opportunity to create a highly effective bar/restaurant through the cost-effective conversion of an existing space to become a Wetherspoon site.
Wetherspoon is perfectly suited to franchising in the true sense of the word, as its success is based on consistency and systems, essential ingredients in operating a franchise business.
Partners will have support from the leading pub company’s design teams, access to their supply chain, training, and marketing resources, and benefit from their “tried and trusted” skills in running successful hospitality businesses.
The first Wetherspoon franchised pub opened in January 2022 in Hull University’s student union, followed by a second at Newcastle University in September 2023, and third at Haven’s Primrose Valley Holiday Park in Filey, North Yorkshire, in March 2024. The first franchise in a hotel opened in May this year, The Conister Arms, located in Douglas on the Isle of Man and a further five franchise pubs are expected to open in the second half of this financial year.
The success of the Wetherspoon franchise may lead to other pub chains looking at a true franchise model but they will need a strong brand, supply chain and operating procedures to provide a reliable product time after time.
Of course, some may argue that such “standardisation” takes away the quirkiness of the British pub for which it is known, but with stiff competition for the leisure spend and a new generation of pub goer, the familiarity of a franchised brand could help keep the doors open.
