BBPA says pub closure figures prove tie is not to blame
2 April, 2009
Trade group says GMB study "emphasises" its argument
The British Beer & Pub Association (BBPA) has argued that figures from trade union GMB on pubco-owned pub closures proves the tie is not to blame for the problem.
The union yesterday published a study showing that 1,131 pubs owned by seven leading pubcos had shut since December 2005.
And Paul Kenny, GMB's general secretary, called on the government to look at the industry and the way it operates.
But Mark Hastings, communications director at the BBPA, said: “These figures emphasise the point we have been making consistently.
“They show that over 75 per cent of pub closures since 2005 are not related to the pub companies and therefore that the tie is unrelated to the problem of pub closures.”
He added that the “driving force” behind closures was the burden of continuing tax hikes and “excessive regulation”.
“A burden that has been crystallised by the sharp and deepening recession,” he said.
The BPPA would be “delighted” to meet with the GMB, Hastings said, to give them a “full briefing” on the issues causing pubs to close.
Readers' comments
Paraphrasing Pygmalion, I think he's got it !!
Programme on Dispatches this Sunday night. Re Pubcos.
tolerite,surely this tenant knew the terms of his lease(assumesd) and also knew when his rent review was and surely he also had increased his turnover and profit sufficiently to accommodate such a bid.The beer increas would not have affected his profits because surely he would have passed this onto his customers (as do all retailers). Is it not part of his lease that he is responsible for the. decoration upkeep and building maintainance as well, so why the astonishment that he was told to carry out his contractual obligations?If they charged the same as to freehouses then there would be no advantage to them to buy the pubs and lease them out. It is actually good business practice for the landlord but not for the tenant but hey ! they read , understood and signed the agreement. Ken Nason
Of course it is to blame.
THere was a piece on the BBC Radio 4 programme last November where a pub tenant rang in to say that their reward for turning a pub around was a rise of £12,000in rent, the beer price was put up twice in six months and they were told to redecorate at their own expense. The breweries are just greedy and kill the golden goose. Our own local brewery charges their tenants more for their beer than to a free house or shops. What chance do tenants have? How can this be good business practice?
The BBPA are going to come under a much closer scrutinity where the involvment of the pubcos are involved.
Nik good post. what you say is true. Again I say whilst you hace a CEO of a major pubco sitting on the board of BBPA they will not help the tied licensee.
What do the BBPA blame for the closures? I blame the pubcos and the smoking ban as the main resons, but they deny both.
Trombone player please ignore the last remark as someone is posting under my name in a childish attempt to discredit me. Anyone who knows me knows I would not use such language. Ken Nason
Whilst the beer tie is a contributer to failing businesses it is magnified because of all the other crap we're juggling... the Pub Cos are unlikely to discount as they have bigger debts than us!!!!!!!!!!!!!! The BBPA should change it's name to the BBPCA (British Brewers and Pub Co Association) as they do NOT represent "pubs" - just look at their figures compared with AC Neilson if you want proof!!!!
utter nonsence release the churn figures (which the bec have) and shame them all
Why does it have to be "either or"? The malaise afflicting this trade is in reality a combination of various factors. 1) Propco greed. 2) Excessive taxation. 3) Excessive red tape. 4) Recession. 5) Smoking ban. 6) Over-optimistic succession of willing fools willing to take a pub with a flawed business plan and insufficient knowledge of the agreement they are signing. 7) Poor trade image. Unfortunately all these factors have hit virtually at once causing the current implosion. So I suggest anyone wishing to come into this trade factors all these elements into their business plan and if it doesn't generate profit (don't forget years 2, 3, 4 and 5 to the next rent review) then walk away. After a few interviews and you rejecting "deals", the good BDMs will realise that you are a business person and may even come chasing you. Above all, never fall in love with a pub - it's a business with a house attached!
Come on all of you and realise that the BBPA if in the pockets of the pubcos, it always a has been and probably always will be.The only way that the BBPA can create any respect is to drop CEO of pubcos from their board of directors.
I have never heard such "crap" the usual denial and propaganda is being spouted out by the bbpa, do they really think the enquiry into the Tie is going to listen to this ? actually they probably will, as usual, they prefer to stand side-by-side with the big powerful bullies, than defend the hard working businessmen such as us! you couldn't make it up !
Small pubs, especially in rural areas, will continue to close (unfortunately) - just as they have done for decades now. If the BBPA really believe their own spin then they are stupid - but I think we all know differently dont we?
Come meet with us and be re-educated! All very communist indoctrination style. Have your thinking realigned to the party. Ken Nason
Pubco pubs dont close, The tennant either does ok (just ok as I have yet to come accross a tennant who is able to re-invest in his pub after he has given himself a wage) and carries on long term or goes bankrupt and leaves, the pub either closes temporarily, whilst a new mug is found or goes on TAW with temporary licencee or goes to a management company so the doors stay open. THIS IS WHY PUBCO PUBS STAY OPEN! A never ending churn of naieve people who see the shiny brochures and hot shot web sites and believe they are going to run a 'safe bet'. What piffle from the BBPA. FAIR PINT need to release a statement to the BBPA and GMB so that the message doen not unravel. The TIE DOESNT NECCESARILY CLOSE PUBS, JUST BANKRUPTS LICENCEES over and over ad finitum!
They would, they all stick together.
Do do, do they, what a disgraceful stance to take, they know it is the tie that is killing pubs, and this rubbish about figures of pubs closing, they do not take into account the holding companies that take over a pub once the licensee leaves, forced to leave by the pubcos unwillingness to help them, this is a national disgrace, and I for one will not stand still and do nothing about this, parliament here we come.
I urge the GMB to go and see the BBPA then they can get the real closures figures which are in the thousands, i.e.e the real churn rate