Advice on new lease and rent review please.

Graham. Ahem. Your pearls of wisdom are enchanting.

PubCos RELY on the income stream from the tie to shore up their indebtedness. The tie is like a peristaltic motion for their cash flow needs and keeps their digestive tract in perfect working order. Their long term business plan dictates they must have a steady income stream from tied supplies that they can borrow against; in addition to their already over inflated rents which are the base of their profitability and long term success; all of which is based on BORROWING against future income stream... When pubs begin to fail en mass because their individual income doesn't convert enough to profit for the lessees to keep going; the PubCos are faced with a massive, previously boardroom unimagined dilemma: 'We've got loads of properties we thought would return Royal Flush income long term and suddenly they're returning a pair of twos. And a lot of them have actually thrown their hand in. What the hell do we do? Great idea - let's let them out free of tie to operators who actually KNOW how not to go out of business and at least we'll have some rent coming in and there won't be another BOARDED UP pub on our patch.'

edited by: Mark Dodds at: 16/09/2008 21:28:34

This post replies to Graham Allman > Advice on new lease and rent review please.


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Mark Dodds 16/09/2008 21:37:20

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Advice on new lease and rent review please.

ERGO: Great risk free business model down the pan in a very different kind of flush from Royal.

The Do Do IS REALLY HITTING THE FAN for the PubCos. Good stuff finally. It could be called Karma if I believed in that.

I do hope the good people on the BESC committee get a full grasp of the situation and particularly look forward to seeing Giles and Ted sitting side by side giving their version of their robust business model straight faced and complacent and calm in the light of recent events.

By the way I have 'asked Giles' via the Punch website two things that he hasn't bothered coming back to me on. When you're a CEO of a company who purports to be accessible to people through the company website it would make a teeny weeny bit of sense to get back to enquirers when they take the trouble to write to you. Even if it's to say 'Can't be bothered'.

Know what I mean? GILES?

edited by: Mark Dodds at: 16/09/2008 21:37:58

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alan waters 16/09/2008 21:29:46

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Advice on new lease and rent review please.

This may be a scary comment to make but my pimpco could happily have my stock order and i would welcome the bdm with coffee n crumpets if i remember wot he looks like,only if they charged me the same price as wholesaler would ide save over £100 per 22gal ide be secure and not strugglin n they would still makin a tidy profit. surley rent n fair pricing has got to be better than another closed outlet.

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Mark Dodds 16/09/2008 21:40:17

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Advice on new lease and rent review please.

Alan you're right - rent with no tie IS better than another closed shop but their problem is they CANNOT let themselves give existing people a better deal because it's not in their nature to do that.

They will squirm and wriggle to get a new operator in on a poorer deal rather than let an existing client take a permanent drop in rent or go free of tie without them paying something back in return. They are too used to being slave masters to see outside of the trap they've got themselves into.

edited by: Mark Dodds at: 16/09/2008 21:42:11

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Graham Allman 16/09/2008 21:40:13

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Advice on new lease and rent review please.

Mark , your calculator must be as hot as your vemin ! You do however make a point, i have had recent conversations....i say no more ...but , want a free of tie pub?

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Mark Dodds 16/09/2008 21:47:15

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Advice on new lease and rent review please.

Graham. If it's in south east London - definitely. Or Canterbury, or Rochester, or any other county town south of London. ABSOLUTELY! Deal is a particularly interesting town.

edited by: Mark Dodds at: 16/09/2008 21:47:25

This post replies to Graham Allman > Advice on new lease and rent review please.