Written evidence submitted by the Institute
for Public Policy Research (IPPR)|
In January 2011 IPPR was commissioned on behalf of
CAMRA and the Campaign for a Fair Pint to investigate the current
status of the tied pub industry. This memo presents several of
the preliminary findings which will be released in a final report
due to be published in July 2011. The following observations are
based on a poll of 424 tenants of tied pub outlets conducted by
CGA Strategy in April 2011.
two-thirds of all tied tenants have managed their pub for more
than three years. 15% however have been managing their pub for
less than 1 year while the remaining 17% have had their pub between
one and three years.
tied tenants were asked how much longer they plan to manage their
pub there appears to be some doubt about longevity. 1 in 3 tenants
do not believe they will continue to manage their pub after three
years with 14% predicting they will no longer hold the pub within
4 tied tenants have had experience in the pub industry prior to
managing their current pub. The core of respondents that did not
have prior experience37%had worked in a "professional"
category, this includes office workers, teachers and managers.
11% had previous catering experience.
of tied tenants said they did not have any training before they
signed their lease. Tenants who have not had any industry experience
or training equate to roughly 10% of all tied pub outlets.
number of tied respondents46%claimed that they earn
less than £15,000 per annum. Only 11% claimed their personal
income was over £30,000 per year.
of all tied tenants58%state that they are financially
investigating the reasons causing financial instability, 90% of
tenants facing difficulties blamed the recession. 88% of these
respondents noted the strain of the beer-tie, followed by 87%
mentioning competition from supermarket pricing.
investigating the tied model further, IPPR calculations show 78
per cent of those who mentioned the beer-tie as affecting their
financial stability also mentioned the cost of rent as a contributing
factor. The claim that lower costs in the dry rent offset the
beer-tie is not a view shared by an overwhelming majority of tied
one-third of all tied tenants have not received information relating
to their Pubco's code of practice.
majority of tied tenants71%believe that the new
code of practice will have no significant effect on their business
while only 17% believe it will benefit them.
36% of tied tenants believe that a dispute with their Pubco would
be dealt with fairly. 40% of tied tenants do not know if their
Pubco would objectively deal with a dispute, indicating a lack
of consultation regarding guidelines and procedures for such matters
between companies and tenants.
1 in 3 tenants believe that their Pubco offers any value to their
business. The majority52%claim their Pubco adds
no value while 16% are unsure.
the minority that claim their Pubco does add value 86% indicate
provision of business training as the most noted reason. Recognition
of brand name was stated by 59% of these respondents followed
by general training with 57%.
26 All of the major pub companies are represented in
this sample, varying according to their proportion of the market. Back