Only 16% of licensees offered free-of-tie option under new codes of practice

Only 16% of new licensees have been offered a free-of-tie option under the newly developed pubco codes of practice, according to a survey released today.

The research, conducted by CGA, found 75% of tenants and lessees were aware of such agreements, but fewer than two in 10 were offered one.

The new codes are designed to address problems over the relationship between licensees and landlords. The survey found awareness of the new codes is high, with 92% of newcomers saying they knew their pubco had one.

The research, commissioned by the British Beer & Pub Association (BBPA) and Independent Pub Confederation (IPC), questioned 440 existing pub owners and 60 licensees who have entered the industry since the codes were introduced. The results are expected to feed into the reopened Business Innovation and Skills committee inquiry into pubco power.

On the positive side for pubcos, licensees' opinions of business development managers (BDMs) are improving. Around eight out of 10 current licensees were satisfied with their BDM. And the majority of licensees said they were having their rent explained to them properly. Brigid Simmonds, the BBPA's chief executive said the results indicated "solid progress". "The new industry codes of practice have been the right approach and are making a difference for licensees," she said.

However Simon Clarke, a spokesman for the Fair Pint campaign, argued it was "quite a limited survey that did not address the real issue of tenant profitability". He said he was not surprised at the figure of 16% for new licensees being offered a free-of-tie option. He added: "The issue is that a free-of-tie option should be offered with the open market rental value, but this is not happening."

New code of practice on pub tie agreements published >>

Pubco code of practice not improving relations, tenants warn >>

Pubco code of practice not improving relations, tenants warn >>

By James Wilmore

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