Enterprise licensees reflect on taking up a managed tenancy

Enterprise is almost half way towards completing a £2m investment​ in the managed tenancy model this year, which will see the 172-strong estate grow by 30 pubs.

Beacon pubs are fully tied on beer, and Enterprise offers​ licensees guaranteed gross profit margins. Publicans receive funded BT Sport and support in marketing, repairs, redecoration and training. 

Profit boost

Will and Sue Poston recently took over one of the additions — the Coach & Horses, in Moreton, Merseyside.

Before the Postons arrived at the pub, it was struggling against com-petition from Wetherspoon and Greene King sites, and taking
just £3,000 a week.

The Postons, formerly leaseholders with Punch Taverns, have turned the site around under Beacon.

Competition

“It was tough for this pub. Before we took it on, it was doing a quarter of what it is now,” Will says. “Without doubt we wouldn’t have been able to take it on here without this deal — considering what the rent would be and the competition.”

Poston admits that, in a dream world, he wouldn’t be running a managed pub, but says the arrangement works for him.

“Everybody wants to get the rent down and go free-of-tie; I imagine every single landlord wants that. Thirty years ago you could make more money free-of-tie, but it’s not as easy now,” he says.

Beacon has enabled the Coach & Horses to match its competition on price and marketing.

“Beacon ticks off boxes of things you need. It is always putting offers on and running competitions,” Poston explains.

Community

And the licensee said the pub has retained its community feel. “It’s not our pub or Enterprise’s pub, it’s the customers’ pub and we steer the ship,” he says.

“Being managed is not going to work for everybody, but you can’t just rely on a good pint nowadays; you’ve got to build a community atmosphere. It gives us a lot of time to focus on that, without having to pour all of our own money into it.”

Anita and Rob Morley recently took on Beacon pub the Alexandra, Waterloo, Liverpool. They’re in the process of taking another Beacon site, and are open to expanding further.

The Alexandra was closed and had failed numerous times due to competition from 16 other licensed sites including a Wetherspoon and
a Spirit pub.

'Sometimes you can't compete'

Anita Morley explains: “It doesn’t matter if you’re on top of every-thing and you try your hardest 100% of the time, sometimes you can’t compete with the prices of other competition.”

Morley, a licensee for many years, said she preferred not to be fully tied at her previous pubs but, on balance, the switch to managed has been worth it.

“The discount on your beer gives you a chance against competitors around you. We don’t have to worry so much about insurance and accounting,” she says.

Customer service

The scheme also allows her to focus on customer service.

“We can do what we want, we have total control. We don’t see a lot of our area manager, but Enterprise is there as a support for us, taking care of marketing and helping us along the way,” she says.“It’s less hassle and there’s less to worry about. It’s been a good experience for us.”

Divisional director of Beacon Mark Brooke maintains that licensees have appreciated the additional support Beacon offers.

Support

“It deals with everyday challenges with ready-made solutions. Even down to how to get the best out of a cash machine or use Facebook
and Twitter, so they can concentrate on customer service and team members,” he says.

“Instead of publicans spending time and money on finding solutions, we want to do it for them.”

He adds that the value drinks offer gives licensees the chance to be competitive.

Beacon

• Competitive local prices and guaranteed gross profit margins
• Ongoing marketing and retail support
• Initial tenancy at will agreement for 12 weeks before signing substantive agreement
• Enterprise redecorates and refurbishes the property
• Target is 200+ Beacon pubs by September 2016