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News Article Comments : Charles Wells commits to AWP reform
Charles Wells Pub Company is promising a fairer deal on machine income for its tenants.
The operator will still share the income with licensees but will no longer take machine earnings into account for the purpose of rent calculations.
The move follows an attack on pubcos by industry expert Phil Dixon at the Morning Advertiser's Tied Trade Summit.
He compared some tenanted pub companies to <stop>****</stop> Turpin in relation to the machine tie — “taking with both hands” by rentalising AWP earnings.
In the case of Charles Wells he said it comparable to finding out “Mother Theresa was running an escort agency from the back of the convent”.
A Charles Wells statement said: "Charles Wells Pub Company has reviewed its machines income policy, covering retailer agreements on Amusements with Prizes (AWP), Skill with Prizes (SWP), Pool tables and Jukeboxes.
"As a result it's announced that whilst it will continue to share machine income, the licensee's income from all of these machines will not be
14 Posts(s) found for this thread: Now displaying page 2 of 2
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info man 22/06/2009 13:06:52  |
RE: Charles Wells commits to AWP reform Very well put, the only contention is how the RENTS are set. Currently under RICS guidance they are subject to abuse because of hyperthetical tenants and comparables and not turnover. Once this is sorted out we will have a chance of surviving. Going back to the BEC report, AWP tie 15. In 2004 the Trade and Industry Committee concluded that "In our opinion, pubcos do not add sufficient extra value from their deals to justify their claims to 50 percent of the takings from AWP machines. We remain unconvinced that the benefits of the AWP machine tie outweigh the income tenants forgo and we recommend that the AWP machine tie be removed." That conclusion remains valid. (Paragraph 103) This post replies to Ian Charles > RE: Charles Wells commits to AWP reform |
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| J Mark Dodds 22/06/2009 13:47:24 |
RE: Charles Wells commits to AWP reform Pubcos are looking at AWP income in the hope that releasing their grip on one part of the tie will earn enough brownie points to get them off the hook they skewered themselves on. They have been serially abusing tenants for decades and the least difficult to understand recommendation of TISC 2004 was to end the AWP tie. Since 2004 pubcos simply flaunted their position, totally ignored TISC and beginning to fiddle around the edges with AWP in 2009 is NOWHERE near enough. Talking about reimbursing tenants or retrospectively reducing rent calculations back to 2004 would be a start but obviously will never be considered. edited by: J Mark Dodds at: 22/06/2009 13:47:31 This post replies to this thread |
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john morphew 22/06/2009 13:35:35 |
RE: Charles Wells commits to AWP reform straying slightly from this thread, with the recent vat reclaim on fruit machines allowed on appeal will this rebate be paid retrospectively to the tenants that have contributed to it over the years? This post replies to info man > RE: Charles Wells commits to AWP reform |
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| Karl Harrison 23/06/2009 08:16:33 |
RE: Charles Wells commits to AWP reform Mark is quite right to be critical here. Charles Wells needs to do a lot more than make token gestures such as this. The brewers and pubcos are clearly not taking seriously the damage that abuse of the tied model is causing in the pub sector. It is clearly the intention of these companies to give with one hand and take with the other. They will no doubt look to drive up the FMT on other income to take account of what they claim to be releasing to the tenant through this fake concession. If Charles Wells was at all sincere in its intentions it would move to reform the beer tie and the rent review system so that they were being operated reasonably and responsibly. Giving up the AWP in its entirety would be in accordance with the recommendations of TISC 2004 and BESC 2009. Its the very least they should do in the very first instance. Until we see some sign of serious intent from pubcos and brewers to resolve the problems in the pub industry tenants' groups should press for further scrutiny and intervention by government and the courts. This post replies to J Mark Dodds > RE: Charles Wells commits to AWP reform |
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