Pub companies: follow-up - Business, Innovation and Skills Committee Contents

Memorandum from Dawn Groom

  I am a publican based in Slough. I have two freehold houses and one leasehold with Enterprise. The Enterprise pub is completely tied for everything and the rent £1,064 per week and we are running at a huge loss.

  I purchase one 11 of Fosters from a wholesaler for £74 and sell a pint at £3. This gives me £264 income from each barrel and £190 profit. At the Enterprise pub I pay £125.70 that's £51.70 more This reduces our profit to £138. Over say five barrels of Fosters only per week we lose £13,520 per annum just on this one product which is a disgrace when we are paying £1,064 rent PER WEEK. I accept we signed an agreement to be tied but in this climate surely the pubco could adjust things to suit. Enterprise know what we sell and they know the rent and rates so they know the pub is and has been running at a huge loss but they do nothing. So we need help!

  On another issue we have also been subjected to the Brulines scam which so far has cost us £16,000 from the reports submitted to us by Enterprise that more beer had gone through our lines than we had brought from Enterprise. We did have some issues but no way did we have that much barrel beer brought out go through our lines. But we had to pay it as we were unaware that the system was under question. Since then Trading Standards have tested our system which showed clear differences, indicating that we again have had more beer go through the lines than has. The Trading Standards tests showed a difference of 16 pints across the pumps if that happened every day at the least Enterprise would demand £17,520 per year for buying out or breaching your tenancy. Why do they get away with it? There is no one to stop them not even Trading Standards can do anything. The equipment should not be allowed to be used, it's an abuse of power. Please listen to the publicans before it's too late

11 November 2009

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