Enterprise defends pubco model

A senior manager at Enterprise Inns has defended the pubco model saying it offers publicans a "commonwealth contract" which will support their business during the recession.

Colin Pedrick, Enterprise's managing director for the East, attacked perceptions of pubcos exploiting retailers and insisted that they are working to create mutually beneficial businesses with their tenants and lessees.

He denied accusations that pubcos are stripping profits from pubs through high rents and beer tie costs, saying that the future of the pubcos is intimately tied to the profits of their retailers.

Speaking at The Publican's​ Pub Trade Summit, held today in London, he said: "There is a lot more work going into fairness than into exploitation. Why would pubcos exploit retailers when our whole future is invested in these pubs.

"It's going to be a bit of a war of attrition going forward and it's not in our interests to exacerbate the problem."

Pedrick outlined support packages offered to tenants and lessees but called on both parties to do more to develop closer working relationships and "open dialogue" in order to allow businesses to continue growing.

"It's about farming not hunting - farming in a sustainable way to promote growth" he said. "All our efforts should now be aimed at working together to achieve mutual success."

Earlier in the summit Alistair Arkley, chairman of New Century Enterprises, called on those in the pub trade to take action now to avoid becoming a victim of the recession.

He said: "You've got to show leadership and inspire your people, not just hide behind the vehicle of corporate politics.

"There will be no room for sentiment, you have to take tough action to survive."

Meanwhile Christophe Jouan, managing director of The Future Foundation, predicted that a number of pubs could profit during the recession as people replace expensive restaurant meals with a night in the pub and also turn to local produce and entertainment.