Wednesday, June 03, 2009

Obfuscation leads to anxious rebellion - so let's find a way to make this work

I KNOW a fomer senior Punch exec - former colleague of Deborah Kemp - who TOTALLY believed in the model until they left the pubco and set up their own pub chain - with a load of very good quality tied pubs as their core estate. Did they MAKE money? NO. Did they LOSE money? YES. 'It's very different when you're on the other side of the fence and you experience the reality' is what they said to me.

Why is this? Because senior execs at the top apply mumbo jumbo economics to their pub business. They don't know how to run pubs but they do know how to drain every last drop of profit out of them. Zero investment by Pub Company, maximum investment by incoming licensees, maximum return (to the pubco) on licensees' investment. THAT is the pubco business model. It's slightly flawed. And why I was saying, pretty seriously, a year ago that, although I am told I am a failure by my pubco, I know I could run a pubco better than any of the current MDs or CEOs - because at least I know what I am doing when it comes to making a pub welcoming, relevant to modern day customers, and I know how to make people come back again and again for more... All things the pubcos are evidently utterly clueless about. All the stuff about logistics and admin I could get number pushers to sort out - like they do already. Fact is there is no earthly reason for pubcos to exist other than to make a lot of money out of nothing.

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