Training companies fail to deliver on promises

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The pub industry is becoming plagued with training firms which are failing to live up to their promises to would-be licensees.An investigation by The...

The pub industry is becoming plagued with training firms which are failing to live up to their promises to would-be licensees.

An investigation by The Publican has found that large numbers of potential recruits to the industry are being offered training and the promise of a pub placement in return for a payment of thousands of pounds.

The Publican has received a number of complaints from would-be licensees who claim they have not been found pubs that meet their criteria, despite paying large amounts of money.

Ken Shipley, licensee of the Coach and Horses in Welwick, Yorkshire, is taking Pubs Direct of Piccadilly, York, to court.

He paid the company £7,000 to find him a rural pub but the only placement that he was offered by Pubs Direct was on a rough housing estate in the city of Nottingham.

He said: "From day one Pubs Direct promised me a country pub. I feel sorry for anyone who falls for it now."

The companies offer a placement service where they promise to place the licensees in a pub as a "retail partner".

Robert Holly, director of Pubs Direct, said he was surprised that The Publican had received complaints and said he was willing to look into them. "We are no longer actively recruiting and do not break the terms of our agreements," he said. "We offer one particular route into the trade - we don't tie people's hands behind their backs."

Yvonne Whiting, a former licensee from Leeds, signed up with another company, Mein Host, which has since folded.

She said: "We paid the company £3,900 to place us. When we arrived to have a look at some of the pubs on the list they were under new management. They were false lists and a lot of them were not even available."

John McNamara, chief executive of the British Institute of Innkeeping, (BII) said: "These companies are charging vast amounts of money for what is essentially an introduction and qualification.

"Our qualifications can be obtained at a fraction of the cost. Anyone who is interested in running a successful pub should contact a well-known, reputable national or regional pub company."

Mark Hastings, spokesman for the British Beer & Pub Association, said: "Any offer that looks too good to be true usually is."

Have you had a similar experience with such a company? Contact Michelle Perrett on 020 8565 3053.

The Publican undercover

The Publican reporter Michelle Perrett went along to a presentation by SLR (Leeds) Ltd to find out what was on offer. Chris Dugan of SLR (Leeds) told the 18 people present at the London seminar that the company provided an "alternative entry into the licensed trade, rather than spending £100,000 on a lease, half a million on a freehold or working 130 hours a week for JD Wetherspoon for £14,000 a year."

Those at the seminar were told that the company offers sites from pub operators. Mr Dugan said it had lists of pubs for licensees in a range of suitable locations and styles. He also said that if you opened after hours - which is illegal - then all profits go to you.

However, when Michelle asked if she could see the list of available pubs and pub operators she was told that she could not - until the money was paid up front.

When questioned by The Publican, Mr Dugan said: "We only guarantee opportunities with pub operators. The company offers a cost-effective way to get into the trade. This is a way for people to dip their toe into the water."

Eddie Gershon, spokesman for Wetherspoon, said: "People should make sure they get their facts straight. Wetherspoon managers work a 48-hour week and earn well in excess of £14,000 per annum."

The Publican would like to make it clear that it has received no complaints about SLR (Leeds) Ltd.

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