Friday, September 07, 2012
The pub is pricing itself out of the market
A classic Private Equity Scam. Pubco's built their huge estates by buying thousands of overpriced buildings using loans that have to be paid out of income generated by the pubs. The only way the pubco's can keep going is to charge more rent than the properties are worth and to make their tenants pay DOUBLE for their supplies, such as beer, than they would pay if they could buy on the open market.
Manifestly the pubco's have invested next to NOTHING in their estates – the pubs are falling down – and customers are abandoning pubs selling expensive naff beer brands over sticky bars in favour of better value, better appointed bars, restaurants and managed pub chain operations where the buildings and interiors are well maintained and looked after because they are invested in. Meanwhile the country's 'independent' pubs become ever even more run down because there's no profit left for the tenants to invest in their businesses while they are paying off their 'partner' pubco's unsupportable debts.
The pubco's need to go.
www dot peoplespubpartnership dot org