Pub "tie" - changes, will this help pubs survive or hasten their death?

[ToraToraTora]

http://www.bbc.co.uk/news/business-30110742
predictably the big landlords are saying it will kill off more pubs but personally I think many need to be freed from their tyranny so I welcome this. Look at the prices per barrell in the article and tell me they are not taking the ***! No doubt they'll find creative ways around it though.

[Zacs-Master]

My Landlord can buy an 11 gallon barrel of Carling from the C&C for about £30 less than from his Pub Co. Good news for the Landlords but bad news for the big Pub Co's. It SHOULD result in many more 'Free Houses' as the big companies sell off pubs to keep profits high however, knowing their greed, it will probably result in them putting up rents and, yes, forcing pub closures.

[hc4361]

Yes, I agree with Zacs, rents will go up. If the landlords are losing money from the tied beer sales they will have to make their money from the rents or sell.

If the pubs are offered for sale to the tenants would they realistically be able to buy them?

Lots of pubs are being demolished or turned into shops and houses.

[jno]

anything that brings cheaper alcohol to the masses has got to be good for Britain.

[Zacs-Master]

jno, it's not really about cheap bear, just more profit for the Landlord so he can keep the pub running (or that's the theory!).

Anyway, it's not effective until 2016 and only then when a tennant renegotiates a new lease contract.

[ummmm]

The over heads of pubs are extortionate...

[Mamyalynne]

I too agree, the rents continue to rise and will ever do so - it forced a dear friend to give up her Pub after 30 years and now a beautiful 15th Century buildings sits boarded up.


They have a stranglehold one way or another.

[carolegif]

I think thus will benefit tenant landlords. Managers he a salary and free houses can buy where they like. I worry that the breweries will get rid of their tenants and put managers in instead.

[bazwillrun]

Landlady I know of a pub now closed because of this tie-in, was making just 2p on a pint of Fosters.....she always said if she could do her own thing she would have easily been able to turn a decent profit from the place.
I think it was Admiral pubs owned the place...its now a trendy estate agents

[Dizmo]

bazwillrun: Oh that's bad, the usual percentage rate even on working mens clubs is (or was by the looks of it) 50% profit mark up. I used to stick 57% one and still sell Carling for £2.20 a pint. They were tied into using Coors products. Surely it can't of dropped so much in the past 4 years. I'm glad I don't drink anymore.

[ivor4781]

Mamyalynne
dozens of pubs have shut in my area for one reason only ,no one uses them anymore, just the odd few locals

[Mamyalynne]

Wasn't the case with the one I mentioned above - an absolute hub of local activity and a good varied customer base.

One of her customers thought they could rife it out so bought in when she left, lasted less than a year.

various other uses have been applied for but now the local residents complain about each and every one,so have a boarded up building on a bonny tree lined avenue.

[ivor4781]

well if its one of those community kind of pubs that's a dam shame then.
hope ya get it reinstated as a going concern soon