Wednesday, 5 June 2013

Pubcos squeeze life out of pubs with high rents and wholesale beer prices

New data shows 60% of pubco licensees earn less than £10,000 a year

CAMRA, the Campaign for Real Ale, is today presenting new evidence to MPs revealing that the majority of publicans tied to the big pub companies earn less than the minimum wage. These new statistics are released as pub campaigners visit Parliament to join a rally supporting Government plans to clamp down on big pub companies charging above market rents and inflated beer prices.



A representative sample of over 600 licensees were interviewed by research firm CGA Strategy*, with the results showing that licensees tied to the big pub companies are substantially worse off than free of tie lessees. A shocking 60% of licensees tied to the big pub companies earn less than £10,000 a year. This compares to only 25% of free of tie lessees who earn less than £10,000 a year.

The other end of the earnings scale also shows a stark difference in earnings, with just one in a hundred tied pub licensees earning over £45,000, as opposed to one in five who run free of tie pubs.

Mike Benner, CAMRA’s Chief Executive said:

“These new figures reveal the shocking truth that many licensees tied to the big pub companies are struggling to survive due to unfair business deals verging on outright exploitation. Pubs that are invaluable community assets are being put at risk by pub companies forcing the majority of their licensees to survive on less than the minimum wage. The inability of licensees to earn sufficient income means money cannot be invested back into pubs enabling them to grow as businesses.”

“The Government should be congratulated for recognising the need to call time on the abuses of the big pub companies. Our message today is that they must push forward plans for an independent adjudicator and code of practice without delay.”

“The big pub companies are contributing to the destruction of Britain’s pubs by failing to support their licensees with competitive wholesale beer prices and rents. Every pub failure is a disaster for the individuals involved as well as for the local community built around that pub. In contrast, pub companies can profit from pub failures by retaining licensees’ deposits, premiums and even selling the pub off to property developers.”**

“Pub goers can join the charge to secure a fair deal for pubs by visiting fairdealforyourlocal.com”.