Commenting on today’s results from the Enterprise Inns which show that the failure rate of its tied tenants has increased by up to 50 percent on last year’s figures the Fair Pint campaign has said that the company’s problems show the weakness of the ‘pubco’ model and there is now a need for a radical change in the sector to ensure the future sustainability of the pub sector.
“Enterprise’s results today are further evidence of the weakness of the ‘pubco’ model. High rents and the use of the tie to charge tenants at unsustainably high prices for their beer and other supplies mean that most of their tenants are struggling to make a living.
“A survey undertaken for the Business and Enterprise Select Committee showed that 67 percent of tied tenants were making less than £15,000 per year from their pubs. It also showed that most Enterprise Tenants blamed the price of tied products and the cost of rent as the main reasons why their pubs are struggling.
“It is clear that despite the company’s attempts to blame their tenants for the problems that the company is facing, it is their business model which is forcing tenants out of business.
“The business support offered by the company and their offer of increasing discounts on their list price for beer in return for further hikes in already high rents are inadequate.
“The only way that the pub sector is going to secure its future is through reform which means that rents are fair and transparent and that the beer market operates like any other and that publicans can choose their suppliers and pay normal market rates for beer and other products”