Exclusive: call for pub tie to 'lose its teeth'

By Ewan Turney

- Last updated on GMT

Stafford: supporting relaxation of tie
Stafford: supporting relaxation of tie
Direct Delivery Scheme (DDS) managing director Nick Stafford has argued that tied licensees must be freed up to operate as entrepreneurs.

Stafford argued that tied licensees must be freed up to operate as entrepreneurs. "The tie must lose its teeth over the coming years and the entrepreneurial potential of licensees must be realised," he said, speaking at last week's SIBA conference.

"The benefits of leasing from a pubco or a brewery-owned pub must be much clearer to the wider public and not confined to lease agreements and training courses.

"Pubcos do have a role to play and hopes of their demise are premature. PR at this time could never be more important and there have been some interesting offerings from Enterprise Inns and Punch Taverns on free-of-tie leases in the press recently.

"Perhaps we should be hearing more about 'turnkey' business packages or franchises; packages that support, encourage and inspire budding entrepreneurs. But if such things are said, critics of pubcos must listen much more; more about the 'give' and be less quick to damn the 'take'.

"Also essential is the development of the standard commercial free-of-tie rental arrangement with a property owner and the better access to banks' capital for individuals and communities to buy pubs.

But Stafford added: "I do not subscribe to the campaigns that accuse pubcos of ruining a licensee's business, because at the end of the day a licensee chooses to take a lease and chooses how to exit."

Through the DDS, over 350 local brewers now offer 1,500 beers to more than 2,000 pubs in a total of 10 national pubcos.

Stafford urged all licensees to continue to review their range and choice of beers. "All decision makers in the pub retail business must seriously review their retail offering.

"The pub industry cannot afford the status quo to continue and I hope this change is firmly based on loosening of the tie, the greater opportunity for aspirants to own their own pubs and for all types of licensees to embrace local beer as one of the most commercially dynamic and innovative parts of the beer and pub industry."

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