Enterprise reopens 50 pubs

Enterprise Inns has appointed three pub management companies to re-open 50 pubs in a trial.

The Morning Advertiser understands that London Town's managed arm GRS Inns is one of the three companies involved in the trial, which began a few weeks ago.

The move has been described by chief executive Ted Tuppen as a "fall-back position", providing the company with a pool of people that it can call on to keep pubs open.

It is likely that Enterprise has decided it makes more sense to pay a management fee to keep pubs open than allow them to close. Enterprise reported last week it had "considerable success" in reducing the number of pubs temporarily closed.

Tuppen reported that only 19 Enterprise licensees had handed their keys back since the start of 2009. "Not much different from last year," he said. The company also reported that it was spending £1.4m in rent and discount concessions per month — but the figure had been stable for four or five months now.

"It's sensible to remain cautious and take every month as it comes," Tuppen added.

He also hinted that Enterprise Inns was unlikely to pass on all of the average 6% increase in wholesale prices when it unveils its annual increase to tenants in a few weeks' time.

Marston's has already said it would absorb much of the increase.

Enterprise boss Ted Tuppen said Enterprise would try to take some of the hit by giving licensees an offer "that puts a smile on their faces".

Beer sales per pub in the first 18 weeks of the Enterprise financial year are running 6% below the comparable period last year.