The
churn rate for pubco side of estates has always looked for around 10%
of an estate to be closed at any point. You see the number of closed
and on the market percentage is a health barometer for the pubco.
It's a gauge of the success of the tension between rent review prices
and beer supply prices doing what they are supposed to: keep lessees
on the brink - a low percentage of closed pubs means too few business
failures which means the whole the pubco operation is not sweating
its assets enough which means its area managers aren't working hard
enough squeezing their tenants for every brass farthing they earn -
which means the pubco's not charging enough and the tenants are
making too much money - which means the tenants' may have breathing
space and some time to think about their conditions and business
health and begin to start asking questions and then meddle around
with the status quo.
IF the
percentage of closures is too high (say over 15-17% of the estate)
then alarm bells begin to ring and concessions are given out to keep
the levels somewhere around the mark where the BBPA and pubco's can
go to Select Committees and OFT evidence and say: look it's not in
our interests to have a business model that fails our lessees (our
hard working tenants, our customers who we respect so much) their
health is our future - to combat all the ravages of the current
economic climate and all the red tape and other burdens that YOU THE
GOVERNMENT are putting on our lessees we are pouring £millions into
keeping them going - which is affecting the health of our parent
company and putting the future of British Pubs at threat.
Please
legislate on Beer Duty and Business Rates and Red Tape and VAT Breaks
to give the future of our industry a chance.
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