Thursday, February 19, 2009

Good point.

However. The underlying fact is that the tie has been manipulated and abused by greedy companies. There is an notional agreement that the tie offers countervailing benefits - this includes taking the added cost of beer angainst supposedly lower than market rent to balance into an operational scenario which allows both parties in a business transaction to benefit from their relationship. It WAS possible to achieve 55%/58% Gp in tie ten years ago. Now unless you're in central London and can get away with charging £4 a pint or more lessees are looking at low 40% margins. Margins like this do not provide a sustainable profit. That is why SO MANY businesses are struggling.

Another significant aspect of the situation is that it has led to THE CONSUMER - that's a lot of people - being ripped off on a massive scale.

Glad some people around here know what goes on in ministers and MPs head. FTSE 100? So what. They're only worth small beer now, they've been wanting to avoid paying tax on a massive scale by claiming they are property companies without ancillary income from the tie. MPs and Ministers, in case you haven't noticed, are not MORONS. And the pubcos can't have it all ways for ever.

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