Is the Ale in Steak and Ale subject to the tie? (Barrel Dregs)

By | December 8, 2009

IMG_1748Is the Ale in Steak and Ale subject to the tie? (Barrel Dregs)

I had a bizarre story passed to me by a concerned lessee.

The BDM of a major Pub Co had suggested that the lessee was possibly breaching his lease agreement by not using their Murphy’s in his Steak and Ale Pie, it sounds too outrageous to be true, but having talked to the lessee in question he confirmed that it was correct.

The BDM is demanding a 30% plus rent increase because the pub should be used as a food based operation, in his opinion.

In reality the lessee is convinced that they want him out to relet the pub as a food pub, this in normal circumstances is a ploy for getting rid of an underperformer.

The pub is a community pub, previous tenants have failed or quit at short notice, this lessee has done better than any over the last ten years.

The present lessee managed to get the turnover up to higher than it had done for years, the recession and smoking ban removed 30% of his gross take, being a community, village pub.

The BDM insists that the dart board, fruit machine etc should be kicked out, removing the local core business and the whole business converted to fine dining.

Beer Sales have fallen and suddenly food is the key with substantially higher rents.

There are a number of food based pubs in the area all fighting over a vanishing cake, another will do the same.

The area is in a technically depressed region of the country with a very sparse population and very dependent on tourism, another food based pub will struggle at the moment.

The serious question is that you have couple running a village pub, with the usual village activities, they do food and very nice food, they are not Gourmet Chefs to set the world alight.

The Pub Co Training gave the rudiments of running a pub and provided a lease with all the usual entailments and tie, they did not sign up to be a Michelin Starred Restaurant or even vaguely approaching that, are the Pub Co’s now going to provide Gourmet Cooking Courses because they have decided that the pub should become a restaurant or Gastro Pub????

The usual attitude prevails with the BDM, they fail to consider that business is finite and not infinite and any increase in business is at the expense of another or neighbouring pubs, as a colleague said to me yesterday if the so called FMT calculated by these Pub Co’s and the amount of beer involved, we would need double or even treble the brewing capacity.

Is there any chance of bringing sanity and cold logic into the industry to combat this recession, some companies are trying others are on another planet.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.