Well they don't. Where's the evidence then? Have you noticed? Half the pubs in the UK are either falling down through neglect and abandoned by consumers or boarded up, for sale: 'suitable for alternative use, subject to planning'? The stark evidence of the Great British Pubco Scam is staring the World in the face - a landscape of closed pubs. Our cultural heritage lying in tatters around us. Pubcos turn THIS: into THIS
What they know about is numbers. Pubs are like beads on an abacus to these clowns. Or CLODS. Other people do ALL the work and most of the capital investment for them. All the pubco's have to do is make sure the beads don't fall off... the tenants do everything else.
The truth, and I say this without any tongue in cheek whatsoever, is that these are cowboy businesses run by fly by night shysters who operate by the seat of their pants all the time. Their businesses are in chaos, they do not return any sustainable shareholder value; they have not a jot of creative insight into what makes pubs work, by and large they have no experience of working in pubs. If they DO have experience of working on the floor of the industry, it's usually for some outfit like Wetherspoon's or another chain, and they were told what to do about every thing from morning till night. They got out because the work was too hard for them and they didn't have enough power. They got into the management side of the trade because they wanted a car and a bonus and a 9-5 Monday - Friday. They are essentially clueless dorks who've been told how to screw down tenants, what to say in a given situation, how to extract the most out of them and never give anything back.
It's disgraceful but no more complicated than that. That is why the pub sector is in such a shambles.
Sorry, didn't wrap that up very well. The pubco SCAM is ALL about numbers. Nothing whatsoever to do with pubs, beer or people. Pubs and people to pubco execs are just easier to manipulate on a P&L and cashflow than irritating products that have to be devised, designed, made, marketed, distributed and actually sold before any profit comes near head office pockets.
When you have thousands of pubs none of the above applies. Here every last bit of the supply chain is already there and in operation. Other people do every last bit of it. And it's absolutely FINE if quite a lot of them are failing - all the time. It's part of the model. The Churn. This, essentially is why the pubcos have never been able to change their spots - failure is built into the system. Not THEIR failure but that of lessees who start the process for the pubcos by investing in the pubco premises before spending an indeterminate amount of time failing as the pubco drains all the profits out of them systemically. The estates are SUPPOSED to work at only 80% - 85& efficiency (when efficiency means a pub is open and earning the pubco a crust) - if there were not such a high level of attrition the pubco itself would be failing - failing to maximise its skills of syphoning cash out of the estate. 95% of the estate trading? That's FAILURE - in the eyes of pubco head office where the spreadsheets are being perused and targets being set, 95% pubs open and working would be CLEAR evidence that their leaseholders are not being pushed hard enough by pubco staff. A steady rate of business failure is proof that the rent reviews and wholesale price hikes are running hard against the publicans' abilities to keep up with ever increasing demands.
Get it? IN case I failed to make it clear. THE TIED PUBCO SYSTEM IS A SCAM. And the reason the pubcos cannot change - even when they know, with a desperation that they HAVE to change?
1) DEBT - they cannot let their income fall or they will default on bond and loan repayments and then doo doo hits fans, well, a little bit - Their real fear is not stiffing the bondholders or shareholders - it's that the execs at the top might lose their easy jobs where they don't have to exert themselves one jot.
2) BRAINLESS IDIOTS - the pubco execs (there HAS been some change since the M&S chaps were called in to save the day) have not even a scintillation of an idea about how to actually RUN a pubco. They cannot innovate, they cannot invent, they cannot think outside of any box other than the cash drawer at the bank.
The antidote to this nonsense? www.peoplespubpartnership.org