Small AWP supplier hits out at 'fear mongering' tactics of large players
Leigh Smith, managing director of LSO Limited, based in North London, has defended the practices of small suppliers after large companies have suggested that smaller firms may not be “fit and proper” and an AWP tie ban would open the pub market to “rogue and illegal” operators, creating a “Wild West-style free-for-all in the tenanted sector”.
Smith said the comments were “shocking” and defended the “robust” process of AWP licensing by the Gambling Commission.
'High standard of service'
“It is shocking that the big suppliers continue to peddle this fear mongering about smaller players in the market,” he said.
“Our claim to success is our attention to detail, flexibility to adapt our systems to fit with our clients - rather than visa versa, and primarily our very high standard of service. It is this that sets us apart from the big players.
“All licensed suppliers are registered on a publicly accessible web site, easy for a leaseholder or tenant to access. So providing a leaseholder can access the web, he can check if his potential supplier is licensed.”
'Terrified of the consequences'
He added: “The big boys have had a cosy club with a high premium fixed price rental structure that benefits primarily the supplier and the pubco, not the tenant or leaseholder. They are terrified of the consequences of true free-of-tie on AWP as they know they will lose business.
“As to the notion the Government will lose income - the chances are, they might gain from healthy cash boxes and accompanying VAT windfall from keener, more efficient suppliers. Then there is the knock on additional profit the tenant or leaseholder makes, helping in securing the future of our struggling community pubs.”
Suppliers in the Novomatic Group, IOA Group and Sceptre Leisure wrote to the Department of Business Innovation & Skills (BIS), after the Government proposed outlawing the AWP tie as part of its proposed statutory pubco code.
