Friday, May 08, 2009

Fears grow over tenanted & managed price gap

How unsurprising. Thus confirming the tea leaves in the dregs of the tied pub system have been read correctly.

Geoff Colyer's statement is revealing: “Individual licensees have never been able to match the huge buying power of the managed companies and have always suffered from this economy of scale factor,”

How does this square with pubco CEO assertions that the benefit of the enormous discounts they achieve through their massive buying power is passed on to tied licensees? How does it square with ludicrous comparisons which have been drawn between franchises and pubco ties?

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