'Code will help Punch become most trusted pubco'

The head of Punch's leased estate says he doesn't expect wholesale changes to the pubcos' new code of practice after consulting with licensees.

The pubco is inviting feedback from tenants to its new lease code of practice, which has achieved accreditation in principle for clarity through the BIIBAS scheme.

The 63-page document outlines Punch's commitment to its tenants across a wide range of areas, including rent, beer flow monitoring, machine income, the tie and tenant improvements.

Punch Partners boss Roger Whiteside told the Morning Advertiser​ he expects a "reasonable amount" of feedback from licensees.

"If we get feedback from partners saying it's not clear we will reflect on that and see if we can make it clearer.

"There may still be details that can be a bit clearer for people. What I don't envisage is wholesale changes."

He stressed that the new code will be legally binding on Punch.

Initial feedback from business relationship managers (BRMs) and others internally lead to about half a dozen changes, Whiteside said.

The code gained accreditation in principle after two "very constructive" meetings with BIIBAS, he added.

Whiteside flagged up the commitments expected from BRMs as an area that offers greater detail than Punch's previous charter.

It says BRMs will visit licensees at least once every four weeks for the first five months in the pub, and at least every 12 weeks after that.

Whiteside added: "We are trying to become the most trusted best value pub company. I understand that trust has to be earned but initiatives like this will move us in the right direction.This is not made in any cynical way."

Upward-only rents​

The new code says upward-only rent reviews will not be included in new agreements and historic clauses will not be enforced at rent review. However, this does not apply to free-of-tie agreements.

Whiteside said: "As a principle that's important. We are saying these are benefits accrued to tied pubs. If we were to have completely free-of-tie pubs then normal property rules would apply; upward-only rent reviews, quarterly rent payments, no BRMs etc."

Whiteside said there are between 100 and 200 free-of-tie leases in Punch's estate, mostly historic agreements on restaurants.