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
away.
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
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