Marstons: managed machines are best

By John Harrington

- Last updated on GMT

Related tags English-language films Public house Landlord Alistair darby

AWPs: income is 10% higher when manamged by pubco
AWPs: income is 10% higher when manamged by pubco
According to a trial carried out by Marstons Pub Company, gaming machine income is 10% higher at pubs where units are managed by the pubco. The result is now being used to justify the existence of the AWP tie.

Gaming machine income is 10% higher at pubs where units are managed by the pubco.

That's according to a trial by Marstons Pub Company (MPC), which is being used to justify the existence of the AWP tie.

The trial at 30 MPC pubs saw the AWP tie maintained, but all income after tax and rent to the machine supplier kept by the tenant.

On average, weekly AWP income at the trial sites — all "Tracker" pubs where rent is linked to beer volumes — was £40 lower than the rest of the estate.

"There is a performance gap of nearly 10 percentage points between the Tracker pubs and the rest of our estate," said MPC managing director Alistair Darby.

"Our actively managed tenanted machine estate has got growing net weekly takes October to December 2009 versus October to December 2008, whereas the Tracker pubs are in decline."

Darby said the reason is that tenants tend to want to pay the lowest rents for their machines and so they compromise on the quality of the AWPs, frequency of change and service levels.

As a result gaming machine players are offered less exciting machines, which may also at times not be working and so takings suffer.

Darby said that as a result of the trial, "we are discussing this drop in performance with the Tracker tenants in question in order to improve things — ideally by us taking back control of the AWP management and a share of the income in return."

Darby alluded to the trial at the oral hearing of the Business, Innovation & Skills Committee last month. The BEC report called for the AWP tie to be axed, but pubcos say it benefits tenants.

Related topics Marston's

Property of the week

Follow us

Pub Trade Guides

View more