Robert Sayles: So you want to go to the Workhouse?

With this view, they contracted with the waterworks to lay on an unlimited supply of water, and with a corn-factor to supply periodically small quantities of oatmeal, and issued three meals of thin gruel a day, with an onion twice a week and half a roll on Sundays. ​ (Excerpt from Oliver Twist by Charles Dickens)

Like many of you I'm sure I spend quite a bit of time on various pub websites looking at pubs, checking out prices of leases and occasionally freehold properties, and taking note of who is selling what and how much for. Last week I saw something that looked vaguely promising on one of the websites which prompted me, more out of curiosity than anything else, to ring up the agent to request details.

Once I'd explained the nature of my call the agent quickly got into his stride. He assured me that this was a superb opportunity to enter the market. "The pub is turning over in excess of 10,000 a week" he proudly proclaimed. "This is a tremendous opportunity Mr Sayles. Not only is there fantastic untapped potential to reposition the outlet there is superb potential to expand trade significantly." Fantastic I thought to myself, a real opportunity here.

I informed him that I would conduct a few discreet viewings and then if I was happy then I'd be in touch to arrange a formal viewing.

"Great. Fantastic." (The level of excitement in his voice suggested that a visit to the bathroom would be next on his list of assigned tasks).

Just as I was about to put down the phone I remembered something I'd forgotten to ask.

"Oh By the way" I said.

"Yes" said the agent enthusiastically.

"When will I be able to have a look at the accounts?"

All of a sudden it all went rather quiet on the other end of the phone. After a somewhat protracted pause I felt compelled to say "Hello are you still there?"

"Err Ummm Err Yes" said the agent clearly attempting to regain a degree of composure "...mm err well we don't appear to have any accounts at this time."

"OK." I said "when will you have them?"

"I'm not sure that the tenant will be making accounts available. The asking price primarily reflects the location of the outlet and the future potential of the business."

"So I won't be able to see any accounts."

"No."

Now there are certain things I take for granted. If for example somebody is claiming that his/her business is turning over a specific amount of money then I expect to see some evidence to substantiate that claim. After all anybody can state that their business is turning over £10,000 a week. To my mind the price of the lease primarily reflects the goodwill of the business and this is reflected in the main by the turnover of the pub. By failing to provide accounts you are essentially saying that there is little goodwill attached to your business. This is fine if you want next to nothing for it, however when you are asking for a substantial premium as many are, then there is clearly a problem.

So why are so many publicans somewhat reluctant to show the accounts? The obvious conclusion to be drawn is that the actual turnover figures contradict many of the impressive claims made in the sales brochure and merely confirm what we have known for some time. People are drinking less as their leisure habits change and many pubs are no longer viable as revenues have fallen to the point where outgoings account for a disproportionate amount of overall turnover.

I don't blame people for not wishing to publicise trade figures. If you were struggling to put bread on the table and desperate to offload you pub, would you? The last two and a half years have without doubt been a disaster for many in this industry, (not for all by any means as in times of transition as these are there will always be winners and losers) and with no obvious sign of a return to the good old days increasing numbers are attempting to get out of a business that has long since ceased to provide a decent wage yet still demands the same levels of commitment and industry. Their plight can be likened to that of Oliver Twist who toiled in the workhouse for the benefit of the privileged few.

So they established the rule that all poor people should have the alternative (for they would compel nobody, not they) of being starved by a gradual process in the house, or by a quick one out of it. With this view, they contracted with the waterworks to lay on an unlimited supply of water, and with a corn-factor to supply periodically small quantities of oatmeal, and issued three meals of thin gruel a day, with an onion twice a week and half a roll on Sundays. (Excerpt from Oliver Twist by Charles Dickens)

It is somewhat ironic that whilst many are desperately seeking to get out others are looking to enter. The rise in unemployment means that for many, given the precarious state of the economy, self employment is the only realistic prospect of employment in the short term at least, and some of those fortunate enough to receive a severance package will be consider a pub as a temporary means of salvation. After all it offers the prospect of a roof over your head and money in your pocket, an attractive proposition for many in recessionary times.

The only consolation at the present time is that many of the pubcos are also feeling the heat so they are in many cases desperate to fill their empty outlets. If you are dealing with a pubco direct therefore then drive a hard bargain and ask for as much as you can get before you sign anything because once you put pen to paper you will get next to nothing as Oliver found out:

'Please Sir, I want some more.'​

The master was a fat, healthy man; but he turned very pale. He gazed in stupified astonishment on the small rebel for some seconds, and then clung for support to the copper. The assistants were paralysed with wonder; the boys with fear.​

"What!' said the master at length, in a faint voice.​

'Please, sir,' replied Oliver, 'I want some more'.​

The master aimed a blow at Oliver's head with the ladle; pinioned him in his arms; and shrieked aloud for the beadle.​

The board were sitting in solemn conclave, when Mr Bumble rushed into the room in great excitement, and addressing the gentlemen in a high chair said,​

'Mr Limbkins, I beg your pardon, sir. Oliver Twist has asked for more!'​

There was a general start. Horror was depicted on every countenance. ​

'For MORE!' said Mr. Limbkins. 'Compose yourself Bumble, and answer me distinctly. Do I understand that he asked for more, after he had eaten the supper allotted by the dietary?' ​

'He did sir,' replied Bumble.​

'That boy will be hung,' said the gentleman in the white waistcoat. 'I know that boy will be hung.'​

(Excerpt from Oliver Twist by Charles Dickens)

There are many perils out there some well publicised others less so. The greatest danger is I would suggest is that you might get more (or should I say less?) than you bargained for and in time join one of the many bemoaning their plight on pages such as this. Be careful, these are treacherous times.

This is an industry full of dedicated hard working people who deserve better. Happy Christmas to you all and may next year usher in the dawn of a new era.