Memorandum submitted anonymously
I signed a lease with Enterprise Inns in May
2006, at a cost of £42,000. Added to this I had to give a
deposit of £10,000 and pay for stock, fixtures and fittings
at a cost of approximately £37,000.
The rent was pre-set at £45,000 per annum.
The lease is fully repairing and fully tied
to Enterprise Inns for all beer, wines spirits and soft drinks.
The average weekly take was £5,500.
On the face of it, the information supplied
to me by Enterprise at the time led me to believe that I was entering
into in a good business arrangement.
In December 2006 I contacted my area manager
to explain that the rent and stock were proving so expensive that
I couldn't meet all of my obligations and that I needed help.
At first I was told that it must be my business plan and they
put one together for me. This allowed no provision for repairs
or renovation, and insignificant allowance for staff. I was already
working in excess of 65 hours a week at about £1.00 an hour.
Close inspection showed theses figures to be grossly inaccurate
in real terms.
My research showed that the average Enterprise
Inns pub was taking £5500 per week and paying £30,000
in rent. I argued this with Enterprise and in June they agreed
to reduce the rent to £30,000 and refit the pub straight
We flooded in July 2007 and the refit did not
start until November 2007. We were finally fully open and operational
from December 2007. I paid full rent throughout this period.
My research has also shown that the being tied
to Enterprise Inns for all of my stock can mean paying as much
as £100 more for one 22 gallon barrel of Lager. This does
seem an excessive amount and if reduced to a difference of £50-£70
a barrel would make a huge difference to our ability to operate
a successful business.
We are a busy pub and with a bit more help we
could make a healthy profit and in turn become a better employer
and better servant to the community. As it is, we are barely breaking
even. I am juggling bills and getting threatened with legal action
on a weekly basis.
29 September 2008