Pubcos offer £18m cash lifeline for hosts
Thousands of tenanted pubs are receiving special help as they struggle with "the biggest test" for the industry in living memory.
A Morning Advertiser survey shows that the four major quoted tenanted pub companies are currently providing special support worth around £18m as pubs suffer in the current economic climate.
Around 1,000 Punch pubs are receiving rent concessions or some other special help from the pubco at the moment. The company is currently offering rent concessions worth around £6m, which is around 3% of the company's entire rent roll.
Chief executive Giles Thorley said rent concessions were a "part" of a raft of support being offered to tenants, which included items like increased marketing support and extra beer discounts.
Thorley said that he was unsure whether support for tenants had peaked. "Christmas is going to be the bellwether — the first proper anniversary of the smoke ban will be this winter."
Earlier this year, Enterprise chief executive Ted Tuppen said that around 70% of those pubs that received special help after they had "got into a spot of bother" were able to stabilise their businesses and trade through their problems.
The total cost of special support for Enterprise licensees that are struggling in the current climate is put at around £8.5m for the current financial year.
Alistair Darby, boss of Marston's Pub Company, which is currently offering tenants additional help worth £2m, said the current economic climate was the "biggest test all of us have faced for a long time".
He added: "More than ever we've got to earn our corn working hard for customers. We've got to think smartly, and find alternative ways to help tenants' bottom line."
Marston's has been running a trial scheme in south Wales where 20 or so pubs have been helped with a 50p per pint discount on a key product. The trial has recently been extended to a group of Marston's pubs in Stoke.
"On the whole, the evidence is that it's been good for us and good for tenants." Darby said, however, that the price lever can be "over-pulled" and it was important to avoid the trap of driving traffic at low margin.
"The industry as a whole is finding life tough. But we really want to help tenants and lessees who are right for their pub and are really prepared to work with us."
Greene King Pub Partners' David Elliott said the company was spending "several million pounds" on special support. Around 200 tenanted pubs are being helped to offer discounted beer.
He said: "This will run until the end of November and might be repeated early next year."
• Have you been offered or asked for help from your pubco? We want to hear from you on what more can be done.
