Annual rent reviews — we just love 'em!

My mind is always drawn to the crystal ball at rent review time and we have reviews going on with three landlords presently. It is the usual commercial debate and somewhere there is a deal to be done.

I have always been against the removal of reviews in favour of RPI-only agreements because their abolition removes the ability for downward rents to take place. However, there is a deeper reason why I want to see them stay.

I feel that for many, the review process is a cathartic event where the operator is forced to consider his future in a more formalised way.

Tenants have a natural aversion to being advised by a business development manager on a rapid visit that we can make our fortunes with frozen microwave pizzas or how we are missing the golden opportunity of being another Starbucks (Stuart MacFarlane was spot on, so we're removing Stella to fit the coffee machine in!).

However, we find that the rent review discussion is far more focused and searching as it leads on to fair maintainable trade (FMT) discussions, which leads to thoughts of "what more could I do?"

The review process sets out a broader context that is missed in day-to-day operating. In the world we live in, on-trade volumes fell 28% in the past five years from research carried out by the British Beer & Pub Association. I read that pub food sales fell 9% in recent periods and contrary to the positive theme of the editorial in the MA last week, I (as a wet-led operator) found The PMA Team's comments scary.

Then I look at the future generation of consumers — my 15 and 13-year-olds plus their friends — and I see no M for my FMT. Pubs, as we know them, are not in the psyche of the coming generation, although alcohol is thanks to on-trade marketing.

Not a pretty view for the landlord or tenant. What we need to do, therefore, is evolve. Stuart MacFarlane was right on one thing — we need to watch the coffee sector because I can assure you that while I do not see any yummy mummies wheeling pushchairs into the local boozer, I do see them ordering bottles of Sauvignon Blanc in Costa.

So, we will try to accept in our reviews the common fact that we are both getting hurt in life (and the pain will go on for a while at least), that we both need to change our approach, and that we need to concentrate on the positives open to us.

Cask ale is an area where pubs cannot be easily threatened. Certain pubs are far nicer environments in which to eat than square restaurants under office blocks. And the UK has still not fully exploited external areas.

We can evolve and it will take some trust and investment on both parts. There is some way to go, but the journey has begun. Keep the reviews, so that we can talk on the way.

Paul Wigham is CEO at Orange Sun Bars​