Tuesday, December 14, 2010

Pubco codes need 'forensic' examination

The analogy is entirely accurate and the description on the Publican by the ex BDM describes the reality well. It's what I've experienced and what led me to thinking 'it can't just be me they treat like this' and finding other people whose experience is the same. I've only ever been an inconvenience to my pubco because I thought I was in a partnership and made demands of their lies and promises which they simply were never for a moment interested in even thinking about committing to.

The tie is the legal construct that has allowed pubcos to say 'it's a low cost entry into the pub trade, we are able to keep the rents lower because the tenant pays a WET RENT which, fairly and justly, only reflects the success of the tenant's endeavours; the better the tenant does the more rent he pays and the better we all do in the partnership. If the tenant is an average tenant they will not be penalised by being over rented because the WET RENT has not increased - as their volume has not. Indeed, if the tenant's volume falls, even if it is through no fault of their own, then the WET RENT will fall accordingly. This system has been fit for purpose for two hundred years and remains to today'. It all sounds plausible and is a complete fabrication designed to obscure the facts.

Meanwhile behind the scenes in Noddy Lala Land where we really live the rents have doubled, trebled, quadroupled and more in the last twenty years while the beer has shot up way over any cost increase indicators in any other retail sector.

That's why pubs are not invested in and why they are being killed off everywhere; starved of profit, incentive and life.

edited by: J Mark Dodds at: 15/12/2010 00:02:46

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