How pubco landlords shape up
What do multiple tenants really think of their pubco landlords? Phil Mellows asked a cross-section of operators about the state of their relationships and how they'd like to see them improved.
TLC Inns, Billericay, Essex
Steve Haslam was named individual operator of the year at the MA200 Awards ceremony last November.
As the founder of TLC Inns, he runs three large, food-led pubs on Enterprise Inns leases, alongside one freehold.
"We entered the relationship with Enterprise four years ago. After the first year the company got to grips with who I was and what I wanted to achieve and since then it's been reasonably supportive.
"We've had our trials and tribulations and Enterprise always stood up to be counted. I can't complain.
"We took the option to choose which BDM we wanted to deal with and we meet occasionally over lunch to go through any issues, problems and help I might need.
"There seems to be a lack of support for the multiple operator, though. We're not going to get rent concessions and we wouldn't expect to, but it would be nice if the company showed its appreciation to lessees at the top end of the business in some other way."
Indigo Pub Company, Hove, East Sussex
Chris Bloomfield is a director of Indigo Pub Company, which has a dozen pubs in Brighton and Hove, three of them Punch Taverns' leaseholds, two Enterprise, including a free-of-tie lease, and one with Hall & Woodhouse.
"We've taken on two Punch sites this year and the BRM has had a direct involvement in our proposals and ideas at each site. For the first time since we've worked with a pubco, or even a regional brewer, the BRM has made a difference.
"From my experience you can wait a long time for a response to even small requests but Punch has totally surprised me. We've been treated as an equal business partner and we've been recognised as a multiple in a positive way — which hasn't always been the case.
"We also have a pub in Punch's turnaround division, though, and it's taken too long to resolve the issues we faced.
"Our BRM has been helpful and, in fairness to Punch, it has listened, but progress has been painfully slow — it's almost like dealing with two different companies.
"We met Punch managing director Roger Whiteside when he was down here. He is obviously behind the change of ethos and was direct in his questioning and approach.
"That's refreshing and encouraging and we would definitely take more Punch sites.
"We have very little to do with Enterprise but that's because the tied site is performing exceptionally well after a major investment in 2007. We don't receive any discount and the RPI rent rise has been painful this year.
"When I look at the price of draught products compared to the new Punch leases it does make me cringe. Our GP has fallen sharply.
"We don't have a bad relationship as they let us get on with it, although I'll be interested to see their approach at the next rent review."
Oak Taverns, Thame, Oxfordshire
Oak Taverns has been going for 20 years, having started with leases from Whitbread Pub Partnerships, which has now evolved into Enterprise Inns. It has 34 pubs scattered across southern England including 16 Enterprise leases, two with Greene King and Charles Wells, and one with Admiral Taverns. Simon Collinson is managing director of the family firm.
"We're a big customer of Enterprise Inns. We've always played by the rules and we've got a good relationship.
"The estate is spread all over the place, though, and we deal with 12 different BDMs, so it's good that Enterprise has introduced a multiple accounts division. While the BDMs continue to look after the individual pubs day-to-day, now we can look at the overall picture with the multiple account manager, and we're starting to get dedicated people within head office who know us. Things are moving in the right direction.
"Enterprise is also looking at new opportunities for us. If the deal's right we've got the people to put into the pubs.
"Admiral is different. It's not got the right infrastructure to deal with multiples. Everything's done deal-by-deal and it very much comes down to the individual BDM."
The Pub People Company, Alfreton, Derbyshire
Managing director Kevin Sammons heads an estate of 45 pubs, 35 of them tenancies and leases, and 16 with Enterprise and Punch.
"These are tough times for them and us, and we're trying to build better relationships with the pubcos.
"At the moment there's not enough consultation with guys like us, the operators. Some of the messages coming from the top are good but I don't see that they're being implemented on the ground.
"Pubcos don't really have a strategy when it comes to multiples. The biggest thing they could do is develop a more strategic relationship with us. We're a business turning over £10m a year, and we have the cash to spend on pubs, but we need time to plan our capital expenditure.
"When a pubco comes to us with a site a few weeks before Christmas it seems opportunistic.
"The industry needs development and capex spend on pubs, but there aren't enough strategic conversations about this taking place at the right level. So let's talk!"
Whiting & Hammond, Tonbridge, Kent
Brian Whiting is a co-founder of Whiting & Hammond, which operates seven food-led pubs including two Enterprise leaseholds, two Greene King leaseholds, and a Harvey's tenancy.
"We don't need a relationship with our landlords. Without being rude there's nothing they can give to us — apart from the site. They aren't going to bring anything to the party. We're good at what we do and just need somewhere to trade.
"Our only issues are rent reviews. The landlord doesn't understand the multiple operator, how our wages work. They're used to the Jack and Vera operations, but we have managers, deputy managers, chefs, sous chefs, and our wage bill can be
double those.
"It's so difficult to make money when they treat us like that. Yet they get the benefits of having multiples as tenants.
"They are trying, though. Somewhere at the back of their minds they can see this is working well. All our sites were bankrupt and closed when we took them over, and they've ended up with a good operator.
"They just need to stop worrying that we might be making a penny more than them."
Southern Counties Taverns, Bognor Regis, West Sussex
Bert Johnson, of Southern Counties Taverns, runs 14 community pubs. These include seven Enterprise leases and four with Punch.
"Enterprise is the most helpful of our landlords. It is most sympathetic to our problems. In the past 12 months it has helped us with financial problems.
"Punch's attitude is that it's your problem, and it has become tougher on rent negotiations since the BRMs stopped doing it. The outsiders it is using don't seem to know too much about the business. Apart from that, your relationship depends very much on the BRM you're dealing with. Some just fight the landlord's corner, others are more experienced and they'll fight your corner. You've got a mixture in both companies."
Chameleon Pub Company, Billingham, County Durham
Chameleon operates seven pubs in the north-east of England. Four of them are leaseholds, split between Enterprise, Greene King and Marston's. Phil Strong is director.
"I spend a lot of time with BDMs and my personal relationships with them are good. I do think they want to help, but the controls and operational structures of the pub companies mean we have great difficulty getting quick decisions.
"Greene King has a code of practice that appears to be very good but it's still slow to respond to queries and issues. The effect of that is you don't feel you're being treated as a partner. Everything gets bogged down. You want decisions made quickly when you're in this business.
"For instance, Greene King recently delisted Heineken. I sell a lot of Heineken but they didn't tell me they were taking it out until someone came along and changed the tap. There was no warning at al
