Pub companies satisfy 10% more tenants

More tenants are happy with their pubcos, with seven out of 10 (71%) saying they would sign up with their landlord again — a 10% improvement on last year.

The figures were exclusively revealed in CGA’s State of the Nation 2012 licensee survey at the Publican’s Morning Advertiser’s Tenanted Pub Company Summit yesterday.

Although 29% of those questioned were against signing up with their pubco again, the report urged

pubcos to aim to reduce this figure to below 20%.

The results illustrate an improvement in the pubco-tenant relationship compared with last year, even though fewer than half still feel their pubco has increased support: 44% of licensees noted an increase in support this year, compared with 39% last year.

Relationships with business development managers (BDM) have also improved. The average satisfaction score rose from 6.3 out of 10 last year to 6.7. This was 6.9 in 2010 and 5.8 in 2009.

The survey of almost 500 respondents found six out of 10 (63%) agreeing that trade was in line with expectations or better. But almost 40% said trade was worse than expected. This shows a slight improvement on last year, with 56% saying that trade was as expected or better. In 2010, that figure was 53%, and 64% in 2009.

One in three tenants said they had managed to increase income in 2012, compared with one in four last year and 26% in 2010.

Almost 60% noted an increase in food turnover. This is 6% higher than last year and a “wholesale change since 2009, when the majority felt as though food turn-over was decreasing”.

Staff cutbacks continue to tail off: 53% have not had to do this, compared with 49% last year and 42% in 2010.

Tenants continued to highlight cask ale as the trade’s top-performing category. Almost half indicated it was faring better than others — an increase of 5% on 2011.

CGA Strategy account manager Graeme Loudon said: “In this year’s survey, we have definitely seen more positivity across the trade, but there remains a need to continue raising performance of the bottom quartile.

“Increasing numbers of licensees told us they had generated higher turnover — particularly from food  — and that their relationship with their pubco was improving through better support, particularly from BDMs.

“The survey also highlighted licensees continuing to embrace new advertising methods, such as social media, to drive awareness and footfall. One in four outlets uses social media as its primary method of advertising, compared with just 4% in 2009 — a massive increase.”