Leases: clause and effect

Would the tie withstand scrutiny by a European court?

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J Mark Dodds 03/05/2009 11:09:58

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Leases: clause and effect

There's not a chance of the tie withstanding proper scrutiny in front of Europe because, objectively, there's no evidence whatsoever that there are any countervailing benefits to tenants of tied pubcos which amount to anything like the financial equivalent of a balance against the extra costs associated with running a tied premises over those of running a free of tie premises.

In essence what pubcos publicly state in their published promotional material, their codes of conduct, retailer charters and in front of investigative committees is all done for the benefit of outside scrutineers, is not implemented in practice, and is window dressing hogwash. Pubcos do NOT do what they say they do on the tin.

This post replies to Gilbert Bank > Leases: clause and effect


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J Mark Dodds 03/05/2009 12:45:18

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Leases: clause and effect

Previous 'evidence' of pubcos countervailing benefits have all come from sources such as the BBPA, pubcos themselves, conceivably further informed by the opinions /views of the likes of APPBG, ALMR, BII, RICS and others who all have had some supposedly unencumbered and objective view of the pub industry but whose position can all be said to have been comprehensively misinformed by the fact that all information of the tied sector's performance is filtered through the massive corporates with no check and balance looking at facts and figures on the ground i.e. no one's inspected in detail what's been going on in tied pubs, what's really been happening where ALL the profits of the tied industry are generated, on the floor and behind the bar of pubs up and down the UK.

All observers to date, such as OFT and M&MC, even TISC and journalists, have been given all the source material which they have used to make supposedly informed decisions about what should happen to the industry from the usual suspects. No one has protected the rights of the individual 'entrepreneurs' who run the industry from the bottom up. It's always been: "The tied pub industry is in great health, it consistently generates enormous profits and retirns great shareholder value" blah blah blah. Non one stopped to say 'let's just look a little deeper into this'. 'Let's look at the financial well being and general health of the industry by asking the people who are behind the bar, ultimately the people directly underpinning the success of the whole tied industry, thousands of tied licensees and publicans, what they think and what they experience of this amazing perennial success story...

It's not complicated is it - many people say the industry needs a representative voice. Ergo there is no representative voice. Ergo the message has always been one sided and that side is the corporate side not the side of the thousands of individuals who pull the pints and serve the sarnies.

edited by: J Mark Dodds at: 03/05/2009 12:47:10