Logo at head of page and on the plethora of TO LET signs copyright Enterprise Inns plc
There is NO honesty within the Enterprise Inns Code of Practice.
A couple of 'throw away' lines at the end of the Code
of Practice pretty much sums it up:
"Enterprise Inns plc have the over-riding aim to enjoy a mutually profitable, open, respectful
and honest working relationship with all of their publicans"
"The Enterprise team is committed to your success in your pub
and we will do everything we can to make sure your business and your relationship with us is not only profitable but also fulfilling
You will not find a SINGLE tenant willing to substantiate any ONE of the highlighted quotes from
the Enterprise Inns Code of Practice. The more successful the tenant the more wet or dry rent is extracted.
As an example, a
member of PIRRS the Pubs Independent Rent Review Scheme made the following comments on an Enterprise pub:
In broad terms 'the
pub' is currently achieving circa 120 barrels, which would indicate a wet-rent of something in the excess of £25,000.
opinion the pub is correctly positioned as a community local but that generally brings with it issues regarding price sensitivity.
The prices charged are, by and large, competitive but the lack of discounts for draught beers and lagers compromise profitability.
This is borne out by the accounts for the year ended 31 st March 2012, with which I have been provided, that show an overall Gross
Profit of just 36.8%. At such margins and at existing levels of trade the pub is not viable.
As to what a reasonable free of
tie rent would be I would have thought that £15,000 per annum at the lower end and £18,000 at the upperend would be about the mark.
This is less than you are effectively paying now with a majority beer, larger and cider tie still in place. Enterprise would expect
a free of tie rent of something in the order of £33,000 per annum, which would leave you slightly better off personally but would
continue to leave the pub unviable in the eyes of the market. I believe you will continue to struggle and the pub will remain
unsalable in the second-hand leasehold market.
This report was produced by EXACTLY the same company that Enterprise Inns claim
to seek advice from in a rent review situation - but, because no rent review was due, the tenant, in this instance, was given advice
on how to dispose of his leasehold interests. Nothing more.
NO indication that The Enterprise team is committed to your
success; NO indication that we will do everything we can to make sure your business and your relationship with us is not only profitable
but also fulfilling and enjoyable
If Enterprise Inns feel able to ignore their; 'over riding aims' when it suits then there
is no reason to believe a single word of the rest of the Code of Practice.
IT'S YOUR CALL