MyShout

It's about time the industry recognised the vital role played by multiple retailers, says Nick Bish

When I opened last week's MA I was both delighted and proud to read about the launch of the Top 100 Club. Delighted because it is high time these entrepreneurial individuals received the recognition they deserve, and proud because so many of them are Association of Licensed Multiple Retailers (ALMR) members.

Overshadowed and out-shouted by both the big boys and independent licensees, they, the smaller managed multiples, are the unsung heroes of our industry. Developing and promoting new brands, they are the testing ground for new experiences which shape the future direction of the high street and they underpin the success of the major multiples and pubcos.

We at the ALMR are dedicated to helping those companies thrive - through business support and advice, campaigning and providing a social space within which they can meet like-minded people. Like the MA Top 100, our core members are multiple operators with fewer than 50 sites. So what are the commercial challenges facing this unique group?

With higher overheads than singletons and lacking the economies of scale of the major multiples, if trade suffers, it is smaller independents who feel the pinch.

The ALMR Benchmarking Survey has shown that, for this type and size of operator, the average cost of running the average pub is now 50% of turnover. Employment costs are the single biggest item and increases in annual paid leave and national minimum wage in October will hit operators with a double whammy. With most operators struggling to improve like-for-like sales in line with inflation, turning a profit in today's climate has never been more challenging.

The second biggest challenge for these operators remains acquiring the right sites at the right price. Whilst most small multiples want freeholds, they often have no choice but to take leases - at a price. Small multiples have only just entered the consciousness of the major pubcos, but there is a long way to go before lease agreements reflect the positive contribution and added value such companies can bring to the table.

Entrepreneurs need maximum freedom and flexibility in which to develop their business and they need to be encouraged to take risks and innovate. As a small multiple, they have a proven track record in managing and developing businesses, but it is one which the pubco model seldom recognises.

It was to overcome this that the ALMR set up a contact group with major industry landlords to help them to understand their small, multiple lessees. We are making progress collectively, but those fighting on a case-by-case basis are still having to confront lease terms more suited to an individual than a company.

Non-assignability clauses and insurance premiums remain particular bugbears, but it is the reluctance of landlords to entertain shared investment without rentalised strings which has caused particular frustration in the wake of the smoking ban. Small multiples invested, on average, £6,500 of their own money in external facilities - but few, if any, received a contribution from their landlord.

With this challenging trading backdrop, these companies need all the help, support and encouragement they can get - both from the trade press and their dedicated trade body. We look forward to working with the MA to help them to further success.

Nick Bish is the chief executive of the

Association of Licensed Multiple Retailers