Pioneering Batemans to scrap rent reviews
Lincolnshire brewer and retailer Batemans is offering to scrap rent reviews for existing and new tenants.
The move — believed to be an industry first — is an attempt to remove tenants' fear that they will be "punished" for trading success.
Batemans is offering tenants a deal whereby rent increases are linked entirely to RPI so there is total certainty about rent levels going forward. Currently, Batemans' standard agreement is a rolling three-year tenancy with a review on the third anniversary.
On the offer to scrap rent reviews, profit partnership director Rob Jones, who joined Batemans from Scottish & Newcastle Pub Enterprises two years ago, said: "This allows tenants to have complete certainty about their future, and work with the confidence that all their endeavours will not be 'rewarded' by a significant upwards rent review.
"If good people have increased their business, why should the brewery suddenly be entitled to take a bigger share?"
True partnership
The move is the latest step in attempts by Batemans to create what it calls a "true partnership between tenant and brewer".
Stuart and Jackie Bateman, the family members running the company after the death of chairman George Bateman last year, embarked on "profit partnership" two years ago — a root-and-branch attempt to create "an environment of trust and respect" between company and pub tenants.
If good people have increased their business, why should the brewery suddenly be entitled to take a bigger share?Rob Jones, Batemans
Under the leadership of Jones, a series of steps have been taken to ensure that "the tenant is put above everything else".
Initiatives have included agreements that reward tenants for developing the business; a reduction of the pub- to-area-manager ratio of one to 20; signing up to the BII lease code of practice accreditation scheme; individualised marketing funds for pubs; and a free-of-charge cost-savings initiatives.
The company employs a legislation and regulations consultant to help tenants deal with red tape.
Stuart Bateman said: "Any normal business partnership has two partners who work closely together and have ultimate trust in each other.
"However, the perception of many tenancy agreements is that one partner seems to consider the other as dishonest, and the other partner seems to consider the other as a policeman. How can this result in the two partners optimising the business?"
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