REVEALED: Heartbroken landlords explain exactly how they are let down by major pub-owning companies with appealing websites offering a change of career or to fulfil a lifetime ambition
Decent people desperate to improve neighbourhoods by running pubs have told they how their dreams were crushed.
They say how they were repeatedly drawn into ‘mis-sold dream‘ by major pub-owning companies with appealing websites offering a change of career or to fulfil a lifetime ambition.
The websites of the Big UK Six breweries know as ‘pubcos‘ are slick, lay out the big numbers and foster an image that turning a good profit is a manageable achievement for people of all levels of experience.
One listing on Stonegate’s website, for the recently closed Fat Walrus in New Cross, Lewisham, said it sought “a new starter or experienced operator”. The pub has since reopened under another name.
The Pubcos get their prospective tenants to draw up a business plan to gain a tied-tenancy. But it is not always clear how feasible they are in practice, says Chris Wright of the Pubs Advisory Service. He claimed that “they know people won’t make money” but accept them anyway.
They also promise support, an unwritten part of the agreement that Chris says in some cases is not available shortly after the ink is dry. He said: “Pubcos should never have been able to sell a pub on the grounds of support.”
Deborah, which is not her real name, had wanted to start a life of stability and family with her former Armed Forces husband. “We went after this dream. And we threw everything and more at the deposit to secure a tied tenancy.
“We very quickly realised it was never going to work because the pub company wanted blood and more. Kept shifting the goalposts, it was just demand,demand, demand.”
She was forced to return to work. Her husband had been due to retire from the Armed Forces but on the day of his retirement, when his pension was due to be paid in, he spent thousands in minutes just to pay some of the debts.
Deborah said he went back to military work: “The dream we’d been chasing of having this family life went in another direction. I would take phone calls from him that would end as I’d hear bombings”.
One north London guv’nor the Daily Star spoke to explained how the deal was made to look more attractive on paper than it would end up being in reality.
He said: “It was always that tied pubs had a cheaper rent” but in exchange the publicans have to buy their beer from the pubco they rent from. “My rent now is £1,200 per week on an estate pub, and I pay 100% of that again on my beers. That’s why they don’t want us to go free of tie when our lease is up, we want to and they won’t have it.”
Phil, also not his real name, was booted out of his pub after just 10 days of trading, despite sinking time and money into getting the pub ready prior to opening.
He said: “We opened and within a week, about 10 days to be precise, I had a letter from [the pub co] saying we were terminating the contract and there were other people coming in. I ended up being about £4,500 Or £5,000 out of pocket. No way of getting that back.
“It has left a sour taste in my mouth, obviously. I feel I was there just to get the pub open, all tidied up and then someone else can just walk in because they are paying a bit more money.”
A BBPA spokesperson said: “For years the Leased & Tenanted pub model has seen people who want to run their own pub successfully partner with companies who support them.
“The majority find the backing of pub companies, which put £200m every year into these venues, invaluable as it means they get help running their pub business and keep pubs at the heart of the community.
“Most Publicans are happy with their pub company, proven by satisfaction ratings averaging 7.6 out of 10.
“We and our members are fully committed to Codes which, rightly, give Publicans protections and provide access to independent dispute resolution should issues arise.”
The Daily Star contacted the “big six” pubcos – made up of Star Pubs and Bars, Stonegate, Marston’s, Greene King, Punch and Admiral Taverns – and so far received no reply to the claims we report.
Meanwhile the Government watchdog of the industry – the Pubs Code Adjudicator (PCA) – is meant to oversee disagreements between landlords and pub companies. But many claim it does very little to help.
A PCA spokesman said: “Pubs Code disputes have fallen sharply and last year our arbitrators resolved 19 cases. We know times are tough for all pub operators and the PCA always works to ensure fairness.”