MRO debate: fear of managed house growth & less tenant opportunity

Industry figures have voiced their fears about a potential rise in the number of managed pubs in the wake of the market rent only option, arguing the legislation will lead to less opportunity for entrepreneurial multiple site operators and stifle innovation.

Speaking at a heated debate at M&C Allegra’s Tenanted Pub Company Summit, British Beer and Pub Association chief executive Brigid Simmonds argued pub companies are likely to move away from long-term leases and towards the five  year tenancies offered by family brewers, causing tenants to ‘lose out.’

Simmonds took part in a panel session MRO: Meltdown or Real Opportunity alongside MP and chair of Save the Pub Group Greg Mulholland, Punch Taverns representative Andy Slee, Pubs Advisory Service’s Chris Wright and James Staughton, chair of the Independent Family Brewers of Britain.

Greg Mulholland

I want to save tenanted pubs from the disaster inflicted by the city boy spivs of the past

Muholland accused the BBPA chief executive of being a ‘broken record’ and said she had failed to show leadership.

READ: PMA deputy editor Mike Berry's piece on Mulholland's 'confrontational' performance

“You’ve been unable to show that pub companies can provide meaningful change and that is why you lost the political battle and the majority of MPs decided the only way was to intervene.”

“I’m not saying the tenanted model can’t work, but it doesn’t have to be stuck with the ridiculously inflated pub company prices. To have a tie for companies that don't brew a drop of their own beer-you think that’s a defensible model? You really are talking to yourselves.”

He added: “I want to save tenanted pubs from the disaster inflicted by the city boy spivs of the past.”

Simmons countered that she knew of many MPs who regretted voting for the MRO and that the industry had made significant improvements under self-regulation.

“You simply have not understood what we’ve been doing over the past couple of years. We’re not looking at the past-we’ve never sat here and said we were wonderful but as an industry we have moved on in the right way and the last thing we need is statutory legislation.”

James Staughton agreed, saying: “Without doubt, all of the pub companies have changed and now the family brewers don’t have the advantage when it comes to tenants choosing between family brewers and pub companies.”