Enterprise licensee Gerry Price attended yesterday's Tenanted Pub Company Summit, organised by the Morning Advertiser. Below, he gives his take on proceedings.
Sitting in a room at the Institute of Directors, listening to discussions about the tenanted sector of the pub industry and where it may or may not be going, was enlightening — or was it endarkening? I'm not quite sure really.
Primarily aimed at the major players in the industry we heard about the rate of decline declining, how tenants "come off agreement" and how they needed to earn £20,000 to £30,000 to be able to reinvest in their pubs.
I'm not sure why they would do that rather than pay themselves a wage but I don't think I was meant to be here, let alone understand.
Slides and bar charts explained why tenants were anything from unhappy to screaming, new lease structures were outlined and RPI increases were presented as an alternative to rent reviews.
Surveys were reported that showed tenants were broke but optimistic, which is probably how they got into trouble in the first place. Not a good thing, optimism.
We heard how recruitment enquiries had doubled, the 'phone rang at least seven time a week now", and much better enquiries they were too.
A new pubco was proposed, born from an Enterprise/Punch/M&B stable by an existing, very successful, multiple operator, who at the same time admitted that a friend had just been completely shafted by a rent review after he had turned around a failing pub.
Confused? I was. A double act from Shepherd Neame and the Independent Family Brewers, Chris Maclean and Paul Wells, Little and Large, explained what a great thing the tie could be and the BII boss Neil Robertson told us how things had progressed since last year and how the BISC deadline of 2011 could, maybe, probably, be met.
Schh free
We were given an inside and semi-confidential look at the bingo industry and invited to share in the pain it had been through, affected by many of the same issues as those affecting pubs which made me feel so much, umm, worse really.
New products like Rock and Roll Factory, Poker Factory and Schh free zones, which has nothing to do with missing your favourite tonic but areas where the youngsters can use their indispensable technology, with all it's rings, Apps and noise, were outlined. Are us tenants in such a big hole that we are going to have to find a similar solution? Mind-blowing!
Regrettably we weren't able to have insights about Domino's Pizza and its relationship with its franchisees but we were treated to all there was to know about slots and coinmetrics. That's fruit machines to you and me, and how enlightening was that?
Defending Ted?
So far so sleepy, almost time for a nice cup of tea. Then on comes Greg Mulholland MP and, having humbly told us how he had quadrupled his majority and received accolades left right and centre for all his pub work, spoke passionately and illogically about pubs being so wonderful that they should get special treatment for everyone from property companies to councils to chancellors.
With barely a nod to the problems caused by government legislation and taxation, which has been as much a reason for our problems as pubco power, he demanded that pubs be returned to the people.
He cheated me of my opportunity to ask the panel what they thought was a reasonable return for a tenant and in an amazingly personal way, was so rude to almost everyone but especially Ted that I, an Enterprise tenant, was not only suddenly wide awake but I wanted to defend Ted!
I wish I could have woken up and found it was all a dream but no, I was there. In a total non sequitor, as I turned to say goodbye to the couple of people I knew, I saw Ted and Greg shaping up like they might actually go out on a first date.
Good grief, I need a pint.