Pubcos face recruiting shortfall

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Related tags: Tenanted pub sector, Leasing, Renting, Landlord

Licensee recruitment remains one of the biggest problems facing the tied lease and tenanted pub sector, the conference was told. The flow of...

Licensee recruitment remains one of the biggest problems facing the tied lease and tenanted pub sector, the conference was told. The flow of entrepreneur operators into the industry was slowing down and pubcos were failing to reverse the situation, said Fleurets director Yaser Martini. "I do not know of any pub company that is going after new tenants as they ought to," he said. Recruitment is still one of the biggest problems facing the pub companies and its getting harder. It's not just the search for quality lessees which is difficult, fundamentally pub companies have not succeeded in recruiting enough numbers from outside the trade." He said pubcos needed to be more transparent with their agreements so prospective lessees and tenants could see what they were taking on. "Lessees are required to produce a business plan prior to interview but how can they do that without this basic information?" he asked. He said the need for training and company back-up for new lessees was important, as was a requirement for business development managers and letting agents to "sing from the same hymn sheet." Fleurets hoped to address the problem in the autumn with a new letting campaign. Other current trends include increased lettings to restaurateurs, reflecting the continuing growth in new food-led pub businesses. Increased supply of properties and dearth of skilled operators available had also seen a growth in new multiple operators leasing up to six pubs at a time running "cottage industries" with low overheads and running costs.

Related topics: Other operators

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