Some people have a very shallow view of situations.
The leaseholders have taken the decision to close their own business themselves. And this is why.
Brewery Rent: £50,000 in a (declining industry).
Overpriced wholesale costs of about £40,000.00 (Marston’s Tied Pub)
Non Domestic Rates payable £25,000.00.
Entertainment Costs £17,500.00 (essential weekend trade)
Door security Costs £17,500.00 (Local Council Restrictions.
Not to mention Labour Costs, Utility Costs, Repairs, Licencing, and the general operating expenses.
The day of the brewery tied Lease is coming to an end, and for pubs to survive in these ever changing times the brewery’s need to change their model.
Purchasing beer be it bottles or draught from a brewery such as Marston’s generally costs the operator about .60p a pint more than a free trader (pub with no supply tie)This cost has to be passed on to the customer in order to maintain the Gross Profits which results in lost custom. In essence a case of Bud purchased on at tied agreement will cost about £36.00 compared to 19.00 in the local cash and carry at the same time a 22 Gallon barrel of Fosters will cost £294.00 from a brewery on a tied pub compared to £180.00 from a local supplier free of supply tie.
Brewery’s such as Marston’s can be compared to the inland revenue in respect that they are only concerned about their own monitory policy and care very little about the customer or the pub landlord. Who will struggle to make a profit and a living to support his family?
I know the landlords of the London well and I also know that although the pub seems to be busy and it quite often is. The brewery take the lions share leaving very little in return for the financial commitment and working hours the landlords and their staff give.
I also know that the landlord and landlady have closed this business and taken some pretty serious legal steps in order to protect themselves from a money grabbing brewery. As a friend I wish them the best of luck for the future.
Meanwhile it will just a matter of a few weeks before the brewery find another mug to invest their hard earned, and work long hours for very little in return.
My guess is they will offer a much reduced rent with much reduced wholesale prices enabling them to retail at around £2.50 a pint. And if this proves to be the case it will leave just one question. Why didn’t the brewery offer the current owners that deal.
