Enterprise to grow 'managed tenancies'
Enterprise Inns plans to roll out its "managed tenancy" agreements to a further 25 pubs following trials at 25 sites in north-west England.
Under the agreements, which have been trialled during the past few months, Enterprise and the tenant jointly agree on a trading strategy.
This has typically involved a value offer, with the licensee agreeing to sell drinks
at a lower price during stated trading periods — Enterprise will pay the difference so that the tenant's margin can be maintained.
The tenant also agrees to open-book accounting, where Enterprise has access to the pub's trading figures, as well as the use of EPoS.
Tenants also attend certain training sessions and take on additional marketing packages, which are funded by the company.
Enterprise's chief operating officer Simon Townsend, pictured, said: "We would work with the publican to 'spec out' capital expenditure that both agree would help to deliver the retail proposition.
"That may be signs and lights, it might be an outside re-painting job or new fixtures and fittings."
There are currently three templates being trialled: a lower retail price offer, a mid-range offer and a simple food package.
"We are working on other templates that may involve a more expansive food offer," Townsend added, although the agreement is not aimed at "top end" food concepts.
All agreed steps would be stated in a separate letter to the tenancy agreement.
Townsend said: "The main thing is about driving sales; all in all it's about driving a refreshed retail proposition through the pub.
"We are looking for significant increases in turnover as a result."
He added the agreement could be rolled out at a further 25 sites, possibly in the same part of the UK.
"We've identified another 25 or so where a similar proposition could work
well, mostly in the north-west, where we think we've got the skills and the infrastructure to do it well."
Townsend said it was too early to say how far the concept would be expanded beyond that, or what kind of returns are generated for Enterprise and the tenant.
