Enterprise 'disappointed' by ALMR evidence
Enterprise boss Ted Tuppen said he was "very surprised and disappointed" at claims from the Association of Licensed Multiple Retailers (ALMR) that the "pubco model is not working".
ALMR chief executive Nick Bish used yesterday's Business and Enterprise Committee hearing to tell MPs that the pubco model needed to be changed. He said the beer and AWP tie needed to be phased out.
Enterprise chief operating officer Simon Townsend said afterwards: "Nick Bish had indicated he would be broadly supportive and a benign witness."
Tuppen added wryly: "That's one subscription we won't be renewing."
However, Bish responded by saying the ALMR's submission was made available in advance.
Bish repeated his calls for change after the session. "It should come as no surprise that we are calling for more flexibility from the pubcos. We represent multiple operators and it is their opinion that more could be done to help sustain this business model into the future.
"However, we are also calling for increased dialogue and negotiation between pubcos and lessees. We have instigated our own Pubco Contact Group, which aims to air and resolve issues between multiple operators and pubcos.
"As multiples represent only a small percentage of pubco lessees, it is our opinion that opening more channels of communication like this can only be of benefit to the smooth running of our industry."
Acceptable balance
The ALMR's written statement to the committee said: "The pub leasing model is by no means perfect and there will always be tensions inherent in this relationship as both sides seek to extract the maximum value and to obtain minimum risk to themselves from the arrangement.
"The key is achieving an acceptable balance to enable all sides to achieve commercial success. The different priorities are not necessarily mutually exclusive and can, with goodwill, be aired and resolved within the industry."
Pubco inquiry round-up
• 'Pubco model not working well'
