Licensing update: How pubcos have fared

Related tags New regime New licensing act Local government

Three months on from the start of the new Licensing Act on November 24 2005, we asked some of the key pubcos how they have fared under the new regime...

Three months on from the start of the new Licensing Act on November 24 2005, we asked some of the key pubcos how they have fared under the new regime so far.

Fuller's: 171 managed and 192 tenanted and leased pubs, mainly in London and the South EastSimon Emeny, retail director, speaking mainly for the managed estate

Where your venues have been granted new hours, are they trading to them?
In general, our pubs are operating with the extra hour from Thursday to Sunday, unless certain events earlier in the week should afford a trading opportunity. We are currently implementing a slightly earlier opening on a Sunday, at 11am, to try and capture an extended lunch session.
Have sales gone up under the new regime?
As we're in a closed period we cannot be specific about trading levels. But our interim results to October 1, 2005, showed like-for-like sales up by 4.4 per cent in the managed estate and we have seen modest growth since then. It is difficult to identify how much of that growth is down to the new licensing rules.
How much have costs gone up?
The clear cost to the business has been the legal expenses, the administration costs, the ongoing costs of renewals and designated premises supervisor changes, the overcharges associated with public entertainment licences and management time spent processing, representing and in some cases negotiating applications.
Have all the pubs received their premises certificates?
No, about a third have not, and a third are incorrect.
Have any of your premises been targeted by the police since the new regime came into force?
Only a small number, and as part of local "sweeps" in given areas.
How would you describe your relationship with local authorities?
Mostly good.
Do you think you will need to apply for any licence variations already under the new system?
Yes, in pubs where we only have grandfather rights - due to delays, or where we are under appeal.
Would you prefer one annual date for licence renewals?
Possibly, as it may be more conducive in management time and fee negotiation, although this could be another
administrative nightmare if replicated across the industry.
To sum up, has the new licensing act been a positive, or a negative experience for your business so far?
Balancing the costs, real and hidden, against the benefits to the business, the Act has not proved to be a greatly positive experience. Fuller's will review this position in the coming months.

Mitchells & Butlers: 1,800 managed and 100 franchised sites across the UK, including the Vintage Inns, Sizzling Pub Company and All Bar One brands.Simon Ward, director of public affairs

Where your venues have been granted new hours, are they trading to them?
We have no over-riding policy, but rather we consider each pub on a case by case basis. Certainly, there are several where we are not currently using all available hours.
Have sales gone up under the new regime?
The overall impact has been mildly positive, but of course this varies from pub to pub.
How much have costs gone up?
While we are keeping a close watch on costs, we have not yet concluded the full impact.
Have all the pubs received their premises certificates?
No. The situation varies by local authority. Moreover we have been obliged to return many certificates because of errors.
Have any of your premises been targeted by the police since the new regime came into force?
Our impression is that the recent enforcement campaign has been general rather than targeted. We believe it to have been proportionate, and by and large we are pleased with the results from Mitchells & Butlers pubs.
How would you describe your relationship with local authorities?
We trade in over 300 local authorities, so generalisations are unhelpful. Some have been very constructive, others less so.
Do you think you will need to apply for any licence variations already under the new system?
Yes. However, it must be remembered that we are still involved in the process in many cases, so that it is too early to tell the scale of this.
Would you prefer one annual date for licence renewals?
Yes, provided that we could be sure that local authorities could manage the process well, and without any increase in cost.
To sum up, has the new licensing act been a positive, or a negative experience for your business so far?
We would share the general view that the new regime has certainly not brought an increase in disorder. Several police forces have reported a reduction in crime and disorder, and this has been our experience. We have never expected growth in sales.

St Austell Brewery: 123 tenanted and leased pubs, and 40 managed pubs, across Cornwall and Devon Jeremy Mitchell, marketing director

Where your venues have been granted new hours, are they trading to them?
About half of our 163 pubs are using the extended hours - mostly just at weekends. Trade in Cornwall and Devon is very seasonal due to tourism, so in many of our pubs the demand isn't there yet for longer hours.
Have sales gone up under the new regime?
No. Not yet - see above.
How much have costs gone up?
We've not seen a noticeable rise in costs yet.
Have all the pubs received their premises certificates?
No. Definitely not!
Have any of your premises been targeted by the police since the new regime came into force?
Yes. Many businesses have received multi-agency visits. Primarily our barstaff are being tested on their vigilance
concerning underage drinking.
How would you describe your relationship with local authorities?
Very positive. Our estate director works closely with the local authorities - the fact that St Austell Brewery pubs all gained their new licences well before the deadlines is a testament to our strong relationship.
Do you think you will need to apply for any licence variations already under the new system?
Yes. In a couple of cases our pubs failed in their initial applications for extended hours - when neighbouring pubs had the hours granted. So we'll be seeking variations to address this.
Would you prefer one annual date for licence renewals?
No. It doesn't matter to us. We're happy to renew 12 months from when the licence was granted.
To sum up, has the new licensing act been a positive, or a negative experience for your business so far?
Yes we are confident that our pubs will start to see the benefits of the new licensing act through increased income once the tourist season gets going in Easter and into the summer season.