The move comes after the London-based operator analysed its sites’ performances during the past 12 months of restriction-free trade.
Commenting on the move of 23 pubs from its Managed Pubs & Hotels estate to Tenanted Inns division, a spokesperson for Fuller’s said: “Operating both managed and tenanted pubs has always been a key tenet of Fuller’s strategy, and the company has always holistically curated its pub estate, operating individual sites under the business model that worked best for the pub and best for Fuller’s and moving sites between the two.”
Changing economics
They continued: “These moves normally happen on an individual site basis, but following 12 months’ trading free of restrictions, and in light of the changing economics of running a pub, we have undertaken a strategic review of the whole estate. As a result, we have decided to move a number of our pubs into our award-winning Tenanted Inns division.
“Three pubs have already moved and a further 20 will transfer over in the coming months.
“We believe these pubs will thrive under an entrepreneurial tenant, with the support of our excellent tenanted team, and deliver a better financial return for the pub and for Fuller’s.”
Strongest possible position
They added: “It will put Fuller’s in the strongest possible position to continue building, growing and enhancing our pub estate – as reflected in our recent acquisitions of the Willow in Bourton-on-the-Water and the Rising Sun in the New Forest, the reopening of the Admiralty on Trafalgar Square and the current refurbishment of The Sanctuary House by Westminster Abbey.”
Meanwhile, tenanted director Iain Rippon said today (Thursday 27 April) the leased and tenanted model must be operated on a “fair and equitable” basis and admitted: “It's a 15-hours-a-day job, seven days a week. In order to have a sustainable and profitable business model in leased and tenanted, it’s got to be fair and equitable and recognise that realistically, as far as a consumer is concerned, it's the landlord of a pub that makes the difference.”
