Further supplementary evidence from Simon
Clarke, Eagle Ale House
BRULINES DEMONSTRATION
INTRODUCTION
In view of the tie arrangements of the lease
most Pubco tenants are obliged to purchase their beer from their
Pubco landlord. In order to "police" this obligation
most Pubco's use "Brulines" as a tool to monitor the
amount of beer dispensed by their tenants, this figure is then
checked against the beer delivered to ensure the DELIVERED and
DISPENSED beers "tally". The difference between any
dispensed and delivered figures is called the VARIANCE.
It is inevitable that there will be a degree
of variation between the delivery and dispense figures as, for
example, 10, 9 gallon, barrels of cask beer may have been delivered
today that have not yet been dispensed, this would create a POSITIVE
VARIANCE of 10 barrels (or 90 gallons on their charts). As the
beer is dispensed the variance should revert back to nil, until
the next delivery and so on. That is the principle, there are
overlaps in delivery and dispense and therefore the variance fluctuates,
so depending on the analysis period, the variance could be positive
or negative and in fact should vary between the two.
The Pubco's seem to consider that when ever
a large negative variance occurs (or a negative variance accumulates)
the tenant must have bought beer outside the tie obligations of
the lease thereby dispensing more than that delivered.
THE EAGLE
We were told, by Brulines and our landlord Enterprise
Inns, that Brulines is an accurate flow metering system—it
follows that, on the basis we are not buying outside the tie obligations
of our lease our variance should be around "0", given
we take delivery of an average of around 265 gallons a week our
variance should not be much more than than 265, ever.
Currently, our Variance is almost 2,000 gallons
(+ ie more delivered than dispensed) over the last 12 months.
To put it in perspective that is around 220 of the barrels you
are about to see in our cellar.
THE MONITOR
Simply a water wheel with an electro magnetic
switch—remember physics iron filings magnet?
CHARTS
Typical weekly chart from Brulines (not openly
available to tenants unless they ask) NB Taken over an 18 week
period.
If we go on line and look at our actual figures
(live) we can input the analysis period to 12 months showing over
2,000 gallons positive variance—the implication being we
are "stockpiling" beer or possibly selling it wholesale
at a mark up on Pubco price!
Also included in the weekly reports is a "Hotspot"
report advising us of when we were busy the week before! What
is useful is that Brulines highlight in blue the occasions they
believe we have cleaned a beer line. NOTE charts show 4 pints
of water and over 72 pints in a barrel and note over 72 pints
in a barrel Lines 10 and 11 (not printed here).
LINE CLEANING
Obviously when cleaning a line you would not
pull through one or two pints it would be around 20-30 pints.
Brulines "guess" that when 20-30 pints are pulled through
in rapid succession (in a small time frame) it must be line cleaning.
With cask ales lines they have no way of monitoring
line cleaner or water other than this guesstimate. DEMONSTRATE
CLEANING.
With keg beers (lager, Guinness etc) they have
a monitor on the water line and beer line. The beer line monitor
measures ALL dispense, the water line monitor ONLY water, the
theory is that
ALL dispensed - water dispensed = beer
dispensed
If the system is accurate why do we now have
such a large positive variance on keg products as well as cask?
11 March 2009
OPEN MARKET RENTAL VALUE—EAGLE SW11
6HG
AS AT 10/05/2006
WITHOUT PREJUDICE
INCOME
| Liquor | 404 barrels *
| £1,089 | £439,956@
| 54.0% | £237,576 |
Food & Catering | |
| £500@ | 50.0%
| £250 |
Letting income | |
| £0@ | 0.0% | £0
|
Total Turnover | |
| £440,456 | |
|
Machines | |
| £5,000 | | £5,000
|
| | |
Gross Profit | | £243,076
|
Costs | |
| | | |
28.3% of Turnover | |
| £124,730 |
| |
| |
| | | £124,730
|
Net Profit Before Rent |
| | | | £118,346
|
Rent Bid (per annum) |
| | | @50% |
£59,173 |
13.28% Rent to turnover |
| | | |
|
| |
| | | |
| Wages | £54,800 |
12.44% | Food Sales | Meals
| Crisps |
| Entertainment | £5,000
| | | £0
| £500
|
| Entertainment | £5,000
| | | |
|
| Heat & Light | £16,500
| | | |
|
| Rates | £8,800 |
| | |
|
| Insurance | £5,000
| | | |
|
| Cellar Cooling | £530
| | | |
|
| Repairs | £8,000 |
| | |
|
| Sundries | £13,000
| | | |
|
| Licensing | £7,600
| | | |
|
| Accountant | £5,500
| | | |
|
TOTAL
| £124,730
| 28.32% | | |
|
| |
| | | |
OPEN MARKET RENTAL VALUE—EAGLE
WITHOUT PREJUDICE
INCOME
| Liquor | 388 barrels *
| £890 | £345,320@ |
56% | £193,379 |
Food & Catering | |
| £6,000@ | 50%
| £3,000 |
Letting income | |
| £0@ | 0% | £0
|
Total Turnover | |
| £351,320 | |
|
| | |
Gross Profit | | £296,379
|
Costs | |
| | | |
| | |
£86,400 | |
|
| |
| | | £86,400
|
Net Profit Before Rent |
| | | | £109,979
|
Rent Bid (per annum) |
| | | @50%
| £54,990 |
| | |
| | |
|
