Gone is the time you could just throw open pub doors and do well

May 20 2009 by Alastair Gilmour, The Journal

The pub industry seems to lurch from one crisis to another. Alastair Gilmour looks at the latest controversy.

Neil Amos, licensee of the Newcastle Arms, Newcastle, negotiated his tenancy agreement with the benefit a wealth of experience in the licensed trade, but there are aspects that he, with hindsight, would do differently next time around.

“If I was coming into the trade now I’d be much stronger on what I would accept in my tie agreement and what I wouldn’t accept,” he says.

“At the moment, the strength is in the hands of the incoming licensee. The big companies have so many empty properties they need experienced and competent licensees to make their business grow. Long gone are the days when you could just throw open your doors and customers would walk in in their droves. You’ve got to offer something different.

“I’ve gone down the cask ale route; some go down the food route where you can make a bit of money for yourself.

“There are so many different things you can do. Pubcos want experienced people who can make a go of the business; they want a long-term business partner, but they need to give something back, rather than offer discounts which lessees have to pass on to the customer.

“ It might grow footfall but there’s no more money in it for them – less money if you increase trade then have to recruit extra staff. You’ve got to keep banging on at them. We all want a win-win situation but too often that isn’t the case. Sometimes you feel like walking away, but we can both make steps in the right direction.”