The background to the sector's spat of the year

The unlikely town of Otley in West Yorkshire has been at the centre of an unholy row between Enterprise Inns and local MP Greg Mulholland — the latter accuses the former of mismanagement. Phil Dixon visited the town to exercise the wisdom of Solomon.

It was, without doubt, the sector's spat of the year. I am of course referring to the Greg Mulholland MP v Ted Tuppen CBE verbal fisticuffs at the Morning Advertiser​ Tenanted Pub Company Summit in June.

I was actually sitting on the panel (next to Tuppen) as the MP for Leeds North West launched into one of the most public personal attacks I have witnessed. In doing so he did what no-one else has ever achieved — eliciting sympathy for Enterprise's chief executive. Mind you, some of Greg's comments did cause confusion — like comparing Ted to Gerald Ratner. Apparently, a few Enterprise tenants thought the company was going to introduce a tie for earrings!

Why were emotions running so high? Greg is clearly upset by the conduct of Enterprise in Otley (where he lives). There is also now history between them, with Ted famously dismissing anti-pubco MPs as "morons" and then compounding the public relations felony by sending off the odd solicitor's letter.

Equally, it must be frustrating that when you have built up a company from nothing to being a major em-ployer and award winner (The Daily Telegraph 2003 Entrepreneur of the Year) you find yourself being constantly sniped at. But in a David v Goliath scenario, it is always the former that receives a favourable press.

The substantive disagreement is centred on the Enterprise pubs of Otley. I decided it was time for a return visit to my native county.

I met up with local Enterprise director Claire Bradshaw and also had an escorted tour from Greg (Incidentally, I have never had the privilege of being driven around by an MP, but I was not quite expecting a 10-year-old Ford Focus estate. I did wonder whether he had missed out on one or two expenses claims).

Otley has 20 pubs, 18 in and around the small picturesque market town (see map). It is clearly, like nearly every municipality in Britain, overpopulated with pubs and probably has been since 1896. Enterprise had six in the town and one (the Spite) just outside.

All change​

The building of a mega Sainsbury's by thirsty contractors created a welcome boost in 2008 sales, but now it's suffering and to make matters worse guess who has just opened up in the town? Yes, JD Wetherspoon!

It's a typically super job with botanical garden conservatoire at the rear and eye-catching patio at the front. So Otley's largest pub with the best location and facilities is now the cheapest.

You don't need Greg's MA or Ted's MBA to know what has been the effect on wet-led local pubs.

The Wetherspoon actually appears upmarket although I am sure a couple of day-trip coaches from Dewsbury would soon change that perception!

Enterprise has re-appraised its Otley presence, selling two sites. This has irritated Greg — who is chairman of the Save the Pub campaign — considerably. The Yeoman was a 300-barrel good-sized house.

It unusually shares an entrance and exit with a local oil firm (Tate's). After their lessee surrendered her lease and eventually left, no-one applied for the vacant pub so Enterprise closed and secured both the pub and the generous rear car park. "Where's that been, tha late?' said Mr Tate to his workers, "Thus nowhere to park, boss," was the reply.

So Mr Tate made an offer Enterprise could not refuse, especially as the pub needed around £100,000 spending on it. It was not unviable but every pub has its price.

The Woolpack, on the other hand, is centrally located. The licensee had gone bust. It was doing 142 barrels and there was no interest in the tenancy.

It also needed £40,000 to make it fit for letting, with £14,000 of that just to make the living quarters habitable (and yes, I have seen the pictures) and, having spent £140,000 on two other sites, the company sold it to a local community charity for disabled people.

Greg believes this is unnecessary and is convinced this 1850s pub still had a future.

So was Ted right to sell for alternative use? All of the licensees that I spoke to, including both Punch and Enterprise tenants, as you would expect, supported the disposal.

Greg, though, has a good point. If you were tasked with closing any three of Otley's 18 pubs you would not pick the Woolpack, simply due to its prime location and large frontal outside drinking area.

Otley sites​

In respect of Enterprise's other Otley sites it is an equally depressing story. The Black Horse, with 15 en-suite but dilapidated, letting rooms was closed. From the tacky window stickers I came to the conclusion it had failed to attract its target market — 18-year-old pool-playing hoodies!

The Three Horseshoes has a chequered and sad history with a previous lessee having a heart attack while in litigation with the company. It has been sold to a niche local free-trade company (Market Town Taverns) and is currently on a Tenancy At Will (TAW) with a tenant who, despite a beautiful day with a market town full of visitors, was closed at 12.45pm!

The Spite, to Greg's chagrin, had closed the day before we visited and is also on a TAW, as is the Red Lion, which was open.

The one and only business on a substantive agreement was Ian and Susan Stephens' the Rose and Crown where I had a truly wonderful beef sandwich, except it was actually a baguette. They clearly have an understanding of some of the key components of the DNA of a Yorkshire consumer — the word baguette is probably a little too exotic.

Greg's solution — freeing the tie would at least help licensees — is understandably valid but a little simplistic. I informed him of 20% of turnover upwards-only rental demands by free-of-tie property companies. In fairness to Enterprise, two pubs have been returned to the community (a local firm and local charity) and enabled 450 barrels to be distributed amongst the town's other pubs.

So what is the future for Otley's pubs? Amazingly a new one, the Old Cock, has just opened.

I was impressed by Wayne Green, who manages Whitakers for a Punch multiple.

JDW is now attracting more customers into the town looking to eat, but Green felt his food offer was superior and doing well.

In respect of Enterprise sites I feel they will struggle to sell the Spite, although surely there is a food retailer who would love to wake up every day and gaze over Ilkley Moor with or without his chef's hat?

The Black Horse ought to be sold to a hotel group and re-brand itself as the Otley Hotel and Brasserie.

I doubt if the company will find an entrepreneur to maximise its potential. Enterprise director Claire Bradshaw disagrees, but we shall see.

The Rose and Crown, with its wonderful food, will need to literally feed off JDW, but the Red Lion will need an exceptional operator to compete with Whitakers and JDW.

Other pubs will evolve and one or two should re-emerge as Asian and/or Italian eateries. There is an abundance of wet-led pubs but few restaurants in Otley.

Greg obviously takes a very dim view of Enterprise's management of his local pubs.

You don't have to be a Warwick University political science graduate to highlight that the sample is probably unrepresentative of a 7.000-strong estate.

If, though, you are a dedicated constituency MP, which Mulholland, with his recent increased majority, clearly is, you look at it from a constituency point of view.

Mulholland, after several invitations, has a working relationship with Punch.

He should at least give Enterprise, via Bradshaw, a similar opportunity. He'll find a lady equally passionate about pubs. Oh, and go in her car, it is slightly (but only just) more comfortable than his own!