'Licensees unsure about dispute resolution'

A high number of licensees are still unsure where to turn when they are in dispute with their pubco, it was revealed today.

The news was unveiled in a survey of 500 licensees — 440 existing businesses and 60 new entrants — produced by CGA, which asked them their views on the new pub industry codes of practice on tied agreements.

The survey was conducted on behalf of the British Beer & Pub Association (BBPA), Independent Pub Confederation (IPC), Federation of Licensed Victuallers Associations and BII.

More than three quarters (87%) of existing business said they were subject to rent reviews. But a worrying 56% of these were not aware of the BII's Pubs Independent Rent Review Scheme (PIRRS), the low cost rent dispute scheme.

Although three-quarters of existing business were aware of available business support from their pubco, 43% were not aware of the official procedures for code disputes and 56% did not know where to go if they cannot resolve a dispute.

However, there was positive news as 76% of existing businesses said they were aware of the new 2010 Code of Practice and of these 89% had received a copy of the code. Of new entrants 92% were aware of the code.

Progress​

The research also revealed strong progress had been made in the relationship between the licensee, pubco and BDM. In existing businesses, the relationship between the licensee and BDM was mainly positive with 78% claiming it excellent, good or fair.

Less than a quarter (21%) said the relationship was poor or very poor. New entrants to the market had an even better relationship with 95% claiming it was excellent, good or fair. Only 5% considered their relationship as poor.

This was reflected in the direct relationship between the licensee and pubco. Of existing business 82% suggested at least a satisfactory relationship with their pubco while 18% said it was poor. Of new entrants 51% said it was good, 42% satisfied and 7% poor.

No room for complacency​

Brigid Simmonds, BBPA chief executive said: "Overall, these results indicate solid progress. The new industry codes of practice have been the right approach and are making a difference for licensees.

"There is no room for complacency. This survey will be repeated again, towards the end of the year to check on progress, and we are committed to ensuring that it continues to be conducted independently.

"We will be looking at all the results in detail and we will want to work with the IPC, and the BIS Committee, for everyone's benefit, to secure further progress in the future."

Simon Clarke, a chartered surveyor, Fair Pint member and licensee at the Eagle Ale House in Battersea, said: "There is both good news and bad news. The good news is there is a good circulation of the code.

"There is an indication that new entrants and existing businesses are getting information from their pubcos but not reading it and understanding it."

Other findings: Existing businesses ​

• Only 9% been offered any changes to their current agreement

• 44% still tied for amusement machines

• 12% confirmed that their lease has a upward only rent review clause

• 24% received a rent discount or reduction

Other findings: New entrants to the business​

• 78% required to take the PEAT pre-entry training course

• 84% subject to rent reviews

• 42% still tied for fruit machines

• 75% were aware of potential Free of Tie Agreements but only 16% of these were offered such an agreement

• 91% had fair maintainable trade and market rent clearly explained

• 44% aware of PIRRS

• 89% made aware of advice and training support

• 83% of these took advantage of the training opportunities