Why do our pubs need help and representation?
The pub industry is currently under severe strain with the enforced closure of pubs due to the COVID-19 crisis.
Not only is there no money coming in, but many of the breweries or pub companies that own the pubs are still demanding rent.
We spoke to the big pub companies in the first week of the COVID-19 crisis about offering a true rent holiday and not a deferral and we are also trying to ensure the coronavirus £25k business grant goes to you, not the pub companies!
Sadly, this type of behaviour from the brewery or pub company isn’t unusual or just a response to the crisis. The tenants of these pubs are often unfairly treated, as the name suggests they are tied to a pub company.
They are required to buy the majority of their beer and other products and services from a particular brewery or pub company and usually at a cost above wholesale price, as opposed to a free house that can buy its products and services from wherever it wants and at a fairer cost.
Why do our pubs need help and representation?
The pub industry is currently under severe strain with the enforced closure of pubs due to the COVID-19 crisis.
Not only is there no money coming in, but many of the breweries or pub companies that own the pubs are still demanding rent.
We spoke to the big pub companies in the first week of the COVID-19 crisis about offering a true rent holiday and not a deferral and we are also trying to ensure the coronavirus £25k business grant goes to you, not the pub companies!
Sadly, this type of behaviour from the brewery or pub company isn’t unusual or just a response to the crisis. The tenants of these pubs are often unfairly treated, as the name suggests they are tied to a pub company.
They are required to buy the majority of their beer and other products and services from a particular brewery or pub company and usually at a cost above wholesale price, as opposed to a free house that can buy its products and services from wherever it wants and at a fairer cost.
Why do our pubs need help and representation?
The pub industry is currently under severe strain with the enforced closure of pubs due to the COVID-19 crisis.
Not only is there no money coming in, but many of the breweries or pub companies that own the pubs are still demanding rent.
We spoke to the big pub companies in the first week of the COVID-19 crisis about offering a true rent holiday and not a deferral and we are also trying to ensure the coronavirus £25k business grant goes to you, not the pub companies!
Sadly, this type of behaviour from the brewery or pub company isn’t unusual or just a response to the crisis. The tenants of these pubs are often unfairly treated, as the name suggests they are tied to a pub company.
They are required to buy the majority of their beer and other products and services from a particular brewery or pub company and usually at a cost above wholesale price, as opposed to a free house that can buy its products and services from wherever it wants and at a fairer cost.
How are pub tenants being treated unfairly?
Overinflated rents
Tenants often have unfair rent charges, as the calculations for the rent review are estimated sales figures that are not a true representation of the current pub industry and do not take into account how the trading of a pub actually works.
The cask ale turnover is calculated based on achieving a full yield from a 9 gallon cask of 72 pints. However, due to the sediment that is in all cask ale, a more accurate yield would be 68 pints. Very often, wastage is not calculated correctly and the costs to tenants are underestimated.
Exaggerated building/property renovation costs
When ending a tenancy agreement, tenants are often faced with a large and usually exaggerated dilapidations bill. We want to help tenants put measures in place to prevent this large bill being received.
We have been helping tenants dispute the pub companies and have been very successful in reducing the dilapidation bills they have received. As a result of these sort of issues, highlighted by four Business and Industry Select Committee reports, going back as far as 2004, legislation was introduced to try and stop unfair business practices from occurring. This legislation is referred to as the Pubs Code.
How are pub tenants being treated unfairly?
Overinflated rents
Tenants often have unfair rent charges, as the calculations for the rent review are estimated sales figures that are not a true representation of the current pub industry and do not take into account how the trading of a pub actually works.
The cask ale turnover is calculated based on achieving a full yield from a 9 gallon cask of 72 pints. However, due to the sediment that is in all cask ale, a more accurate yield would be 68 pints. Very often, wastage is not calculated correctly and the costs to tenants are underestimated.
Exaggerated building/property renovation costs
When ending a tenancy agreement, tenants are often faced with a large and usually exaggerated dilapidations bill. We want to help tenants put measures in place to prevent this large bill being received.
We have been helping tenants dispute the pub companies and have been very successful in reducing the dilapidation bills they have received. As a result of these sort of issues, highlighted by four Business and Industry Select Committee reports, going back as far as 2004, legislation was introduced to try and stop unfair business practices from occurring. This legislation is referred to as the Pubs Code.
How are pub tenants being treated unfairly?
Overinflated rents
Tenants often have unfair rent charges, as the calculations for the rent review are estimated sales figures that are not a true representation of the current pub industry and do not take into account how the trading of a pub actually works.
The cask ale turnover is calculated based on achieving a full yield from a 9 gallon cask of 72 pints. However, due to the sediment that is in all cask ale, a more accurate yield would be 68 pints. Very often, wastage is not calculated correctly and the costs to tenants are underestimated.
Exaggerated building/property renovation costs
When ending a tenancy agreement, tenants are often faced with a large and usually exaggerated dilapidations bill. We want to help tenants put measures in place to prevent this large bill being received.
We have been helping tenants dispute the pub companies and have been very successful in reducing the dilapidation bills they have received. As a result of these sort of issues, highlighted by four Business and Industry Select Committee reports, going back as far as 2004, legislation was introduced to try and stop unfair business practices from occurring. This legislation is referred to as the Pubs Code.
What is the Pubs Code?
The Pubs Code was introduced in 2016 underpinned by two key principles: Fair and Lawful Dealing and making pub operating business tenants no worse off than if they were free-of-tie. This would be achieved by means of a simple Market Rent Only (MRO) option that would be available to them.
Since the implementation of the Pubs Code, we believe that only a handful of tenants could have achieved a Market Rent Only (MRO) option, through an agreement with their pub operating company and thousands have lost out.
The pub companies continue to complicate the issue, confuse landlords, take excessive time in negotiations, deliberately mislead, hold back information, use tactics aimed at avoiding the Code and generally game the Code to their advantage.
This has to change. The Code isn’t working.
What is the Pubs Code?
The Pubs Code was introduced in 2016 underpinned by two key principles: Fair and Lawful Dealing and making pub operating business tenants no worse off than if they were free-of-tie. This would be achieved by means of a simple Market Rent Only (MRO) option that would be available to them.
Since the implementation of the Pubs Code, we believe that only a handful of tenants could have achieved a Market Rent Only (MRO) option, through an agreement with their pub operating company and thousands have lost out.
The pub companies continue to complicate the issue, confuse landlords, take excessive time in negotiations, deliberately mislead, hold back information, use tactics aimed at avoiding the Code and generally game the Code to their advantage.
This has to change. The Code isn’t working.
What is the Pubs Code?
The Pubs Code was introduced in 2016 underpinned by two key principles: Fair and Lawful Dealing and making pub operating business tenants no worse off than if they were free-of-tie. This would be achieved by means of a simple Market Rent Only (MRO) option that would be available to them.
Since the implementation of the Pubs Code, we believe that only a handful of tenants could have achieved a Market Rent Only (MRO) option, through an agreement with their pub operating company and thousands have lost out.
The pub companies continue to complicate the issue, confuse landlords, take excessive time in negotiations, deliberately mislead, hold back information, use tactics aimed at avoiding the Code and generally game the Code to their advantage.
This has to change.
The Code isn’t working.
