Monday, July 18, 2011

Operators sign up to BDM course

Who's responsible for taking on lessees who have no business training, practical knowledge or financial acumen who, apparently, are also resistant to learning these essential skills then? Ah yes. That'll be the potential lessees won't it? Basically all the responsibility lies with anyone who has a few tens of thousands of pounds to invest, as a 'low cost entry' into setting up their own business, in a pub. That's how this trade has operated for the last twenty years and is why it's on it's last legs. It's set up like that so the pubcos can blame everyone, everything and anyone for their self created disaster - other than themselves.

The thousands of pubs that are failing all over the UK need hundreds of thousands of well targeted investment by people who have knowledge of many aspects of pub operation to get them fit for contemporary trade. Allowing new lessees into the pub business on the back of a 'it's a low cost entry' tip is just misrepresentation; there's no such thing as an easy ride and 'low cost entry', which I've heard from the mouths of people right at the top of pub companies in public hearings in front of MPs is nothing more than underhand and disingenuous enticement. Hard work and a few grand combined are not generally enough to turn a dying dog into a winning whippet. Proof of this is that pubcos who also run 'managed' estates would never expect a manager to turn one of their own failed pubs around without a substantial cash investment by the pubco. Typically upwards of £150K and many times going as far as £400K. That suggests pubco's know something that new, entrepreneurial licensees don't.

Following thses observation and in response to the people in galss houses quip; BDMs, by default, are not entrepreneurial; if they were, they would be running their own business instead of policing someone elses that works entirely by taking all the profit profit out of pubs without ever putting anything back into the system.

This trade revolves around 'caveat emptor' being applied to everyone except the CEOs who just keep raking in massive bonuses as reward for their consistent failures.

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