More than half of the company’s estate is on the Business Partnerships Agreement (BPA) which sees rent fixed for an agreed term, with the only change being in line with RPI.
The RPI figure is significantly lower than that used by a number of larger tenanted pub operators.
The current recorded RPI level is 4.8%, which has caused concern for many licensees as it could force some pubs to close. Last year, H&W capped RPI-linked rent adjustments at 2.8%, and at 2.4% in 2010.
The company has also negotiated supply deals with energy companies Professional Energy Services and Flogas to offer licensees competitive pricing for utilities. The family brewer said that this was done in response to a survey in 2011 among its licensees.
H&W business partnerships director Matt Kearsey said: “Our business partners asked us for more help controlling costs and by capping RPI increases well below the current rate of inflation and offering the benefits of our group purchasing power in utilities we are supporting them in this vital part of their business.”
Last year, the issue of RPI levels on rents came to the fore. Trade expert Phil Dixon challenged tenanted operators to follow the lead of Fuller’s and cap RPI-linked rent rises at 3%. Marston’s caps its RPI increase at 5% and Greene King at 4.75%. RPI reached 5.3% in March 2011.
Fuller’s and Greene King said they would revise the figures in April, in line with their financial year.
Related Forum comments