Tuppen: 'end upward-only rent reviews'

Ted Tuppen has called for an end to upward only rent reviews following the announcement of a MP probe into the relationships between tenants and pub companies. Speaking as Enterprise Inns unveiled interim results for the six months to April, the chief executive told The Publican: "I don't think there is any place for upward-only rent reviews. Things change, rents should go up and down."

Enterprise removed such clauses from its agreements some time ago, said Mr Tuppen.

The MP enquiry has thrown the leased model - and most significantly the beer tie - into the spotlight.

The pubs boss, who is also chairman of the British Beer and Pub Association, said that there were two basic reasons why a tenant might fail.

He said: "The rent might be too high or the licensee might not be doing as well as he should ie the turnover is not high enough.

"I'm not saying we never get it wrong but we work very hard to get the rent right. If a pub fails it might not be our fault, it might be the operator."

The investigation has been prompted by fears that pub companies are dominating the industry.

The boss of the 9,000-strong giant said that the company could not be clearer with messages contained in its documentation. "Licensees do not always enter an agreement with sufficient legal advice and we could not be clearer that this is something they must do.

"We also have a 30-day cooling off period where they can walk away with no penalty. How fair can you be? This business is all about licensees and unless you have agreements that demonstrably fair, you will not have a business."

Mr Tuppen said that if, as a result of the probe, licensees and pub companies had to demonstrate that both parties had taken professional advice, it would be a good thing for the industry.

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Parliamentary probe into pubco-tenant relationship (7 May 2004)