News Article Comments : Enterprise toughens line on buying out

RE: Enterprise toughens line on buying out

"Tuppen claimed that Enterprise was “reaping the benefits of getting rid of those breaching their terms.” He reported that pubs saw an average 12 to 15% increase in beer volumes after the arrival of a new licensee compared to the 12 months prior."

Do you not think the increase is because they new incumbents have not been battered down at the point of entry - and would the ones being turfed out not be the same ones in a large number of cases that showed that very 12-15% growth on entry?

There is only 1 reason to buy out and that is because the lessee can't maintain profit based on tied prices - you leave people with zero alternative - what did you do to help these people - what were their books like - what was the situation of trading at the time this happened - a simple statement belies true facts.

All I can say is that over the coming months, if this is the stance, stand by for a whole load more closed pubs!

edited by: Admin at: 19/11/2008 08:26:39

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RE: Enterprise toughens line on buying out

I understand Martin - and I was being a tiny bit facetious - but the main point stands for me - help those that need it and give an alternative.

We had a problem with payment a couple of weeks ago - the first stance of the person at Enterprise is - cash with order - after paying off your arrears. No plan, no actual help - just, in real terms - 'pay the money you are unable to pay or we will not deliver (and therefore due to the tie you can't make any money to pay the money owing), and then pay in advance for the beer you have not sold so we don't become disadvantaged' - not very helpful, and we have not had a payment problem in the 5 years we have been there.

Of course, if your bank balance is burgeoning and you are buying out - get out. It has to work both ways, and I agree with that point.

This post replies to martin kay > RE: Enterprise toughens line on buying out

Enterprise toughens line on buying out

This is fantastic!

If you're not familiar with the pubco model just re read this article and look between the lines.

edited by: J Mark Dodds at: 19/11/2008 10:04:56

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RE: Enterprise toughens line on buying out

So, nothing to do with credit crunch, smoking ban, supermarket pricing, high rents or the iniquitous beer tie? Pubs are closing because of a clampdown in buying-out?

"..if licensees breach their supply term, they're stealing from us", TT is quoted as saying.

Naturally, this only works one way. The pubco, Enterprise in this case, do not steal from licensees.

They do not extract too high a rent from non-viable properties.

They do not receive any kind of "head office" discount on the supply of goods or services.

They do not pay for repairs and renewals as per "ingoing dilapidations" to a suitable standard. And seek to extract the maximum by way of "outgoing dilapidations"

They do not discount your rent for parts of the property which cannot be used, through disrepair.

They do not share the "excess" of the over-priced and unregulated buildings insurance which forms part of "their" terms and conditions.

edited by: Admin at: 19/11/2008 10:11:39

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RE: Enterprise toughens line on buying out

Thank you Stephen for saying it.

Tuppen is personally responsible for the culture he has created, the conditions his company has imposed on the thousands of lessees who signed legally binding contracts which do not live up to what they say on the 'Retailers in Partnership' tin:

"Running a pub, like any other business, is all about having the boldness and energy to go and grab a new venture.

Enterprise Inns has been working with its business partners in pub trade ventures since 1991 on the principle that each partner brings key strengths and skills to the relationship. We provide skills, experience and resources to support our pub retailers entrepreneurial flair, expertise and enthusiasm. We call this approach 'Retailers in Partnership'.

This philosophy extends across all our trading relationships. Whether you’re a supplier, pub retailer, employee or investor, you’ll find the decision making process surprisingly painless.

We can offer the best choice of pubs nationwide and have a range of versatile packages to suit most requirements.

Enterprise Inns is embarking on an exciting investment programme across the Hull, Grimsby and Scunthorpe areas. With a proposed investment of over £1million in 20 great business opportunities. A unique support package, including free initial and ongoing training, business support, tailor-made marketing and promotions package and a home for you and your family. Flexible deals from 1 year and ingoings from £7k – this is truly an opportunity not to be missed. Want to know more?"

I know quite enough thank you Ted.

edited by: J Mark Dodds at: 19/11/2008 10:11:36

This post replies to Stephen Docking > RE: Enterprise toughens line on buying out