Pub Co, Licensees Horror Stories 4 (Barrel Dregs)
Please note, access to this site is totally free if you would like to subscribe (No Charge) on www.buyingapub.com, they are free to be read for your guidance and aimed to help you get through a time of considerable pressure and demand.
Barrel-Dregs has been run for many years, we change all the identifiable details, but give you an insight as to many of the sharp or bad practices by a number of companies, in most cases they are just legal but morally unacceptable.
We have a number of Pub owning companies that we will not recommend, their actions have featured in Barrel-Dregs too many times, we did hope that by highlighting their antics they might change, but in Barrel-Dregs terms “Leopards do not change their spots, they cover them with more Mud.”
Another true, sorry story that we will keep running to make would be Licensees/Lessees/Tenants do much more research into the business, the company and their suitability to take a Licensed Catering Business or any Business for that matter. Anyone selling or leasing you anything in respect of a business, will always be economical with the truth, their job is based is based on selling or leasing something, however big or small, it’s a very harsh learning curve and very satisfying when you get it right.
Thanks for your help, I got stuck behind the bar again last night. I did however fish the leaflet out and I am calling them today. It’s all gone horribly wrong here (after a year of profitable trading).
My dad who I need for some kind of help in forming an action plan has stuck his head in the sand but the pub is losing about 2k a week and I am going crazy with worry.
The loan for the assigned lease is secured against my parent’s house (120k) and the guilt I feel for bringing the family to this, is immense.
We are on the Pub Co’s recovery scheme with 100 off 36gall but is drop in the ocean compared to the bills that are racking up…..Weekends are still busy but whereas we were taking 1 to 2 k on weekdays we are now doing 500 quid if we are lucky. It all started in October and really suddenly! I blame myself for not reacting but what could I have done in such a huge downturn. I’m at a loss as to what to do now as my dad who has been in business (not pubs) all his life just says hang in here, but I know it’s too late already.
The Pub Co can’t do anything as I’m on the discount already, bailiffs have walking possession of fixtures & fittings due to rates arrears and I’ve not paid food suppliers for 3 months. I just want to walk but my dad just won’t surrender the 120k investment and I don’t blame him!
If it wasn’t for the greed of the Pub Co and we were paying a sensible tied price for our beer we certainly wouldn’t be in this mess!
Sorry to put this on you as you don’t even know me but I needed to get it off me chest. I will be at the meeting on Monday. I really don’t know why the whole tied system does not wake up and revolt by just not buying from the Pub Co’s.
I feel it’s the only way.
I have finally sold my lease.
Unfortunately I ignored your advice because I thought I knew about the business and had been a Chef for years.
You were absolutely right, I assumed that because I had been accepted as a tenant and my business plan had also been accepted, that it would be fine. | I declined to read the book that you offered on Buying a Pub until three months later.
I still have marks where I kicked myself.
I spent £40K on a new kitchen, lost a further £60K over two years.
Your intervention with one of the directors got me a £9K reduction in rent, but they insisted on a full tie, which you were critical of, but I had no option.
They refused to agree to a deed of variation on the rent reduction on the lease.
However I have now sold the lease and am free again, much wiser and determined to stop other people making the same mistakes.
If I had been fully aware of the constraints on trading across the board imposed by these leases, I would have taken a totally different approach.
I was fortunate I could stand a £100K loss without destroying my life, I am now much poorer and wiser.
The Government Committee was absolutely right in what it said, certainly as far as I am concerned.
The Pub Co’s need to change their terms since they leave no room for error or a learning curve on developing the local business and essentially identifying the business that suits that particular pub.
Pubs are individual businesses and highly dependent on the people running them, they are not all high street premises with endless people looking for food and drink.
My particular Pub Co is essentially a property company, their back up is negligible and at worst non existent, the BDM was never really available for advice or guidance, whether he knew anything about running a pub I have no idea, it was not apparent to me.
I could go on for ever but I won’t, if you can change these companies to a better way of operating it will help a lot of people.