It's all about trust, honour, integrity and respect, isn't it?

By Robert Sayles

- Last updated on GMT

Related tags Tenants Neil robertson

Robert Sayles: "Give publicans what they deserve
Robert Sayles: "Give publicans what they deserve
To fully understand the pubco/tenant relationship fully we need to look at two key concepts; power and partnership, writes Robert Sayles.

Isn't it funny how people's perspectives can differ so markedly?

Take Neil Robertson for example. He recently stated that his overriding concern at the moment is not the business model, the tie, the deteriorating relationship between pubco and tenant or even the issue of tenant profitability.

No, what preoccupies Neil most at this moment in time is, wait for it, 'gullible tenants'.

Not for the first time it must be said, I have been left scratching my head in bemusement following one of Neil's pronouncements.

By placing 'tenant gullibility' at the forefront of the debate Neil is attempting to convince both us and the BISC that codes of practice will be a major step forward in addressing the issue of churn. (It must be said it also conveniently absolves pubcos of blame for much of the current carnage).

It's an 'interesting' idea shall we say.

Yes, without a doubt naivety has been displayed in abundance by many of those eager to 'live the dream'. But it is not the real issue; a fact I suspect Neil knows only too well.

After all, if he were truly concerned about 'gullible tenants' would he not have pushed for pubco 'training courses' to be rather more rigorous than those currently on offer?

Would he not also have suggested that such courses be externally validated, thereby ensuring tenants 'graduate' with something more meaningful than a certificate in chalkboard design?

Of course he hasn't. The question is why?

Could it possibly be because such initiatives might prove somewhat problematic?

After all, tenants armed with real knowledge are likely to ask some rather awkward questions, aren't they?

For example they might well wonder why pubcos have set FMT at many outlets 20% - 25% above current trading levels.

Or perhaps they'll want to know how they're expected to make a decent living on a margin of 42%.

Then again, they might be a little confused as to why pubcos continually downplay the costs involved in running a pub?

I suspect they'd also want an explanation as to why their rent is linked to RPI, or why it is damned near impossible to get a drinks price list out of their potential 'partner'.

In fact, after they've taken a few additional factors into consideration they might very well conclude that running a pub isn't such a good idea after all. Now that wouldn't be a very satisfactory outcome now, would it?

And let's be honest about it. This industry has, over the years, welcomed gullibility and naivety with open arms; shamelessly manipulating and abusing it.

Is it not somewhat ironic therefore that this same industry now seeks to place the blame for its demise upon the very people it has mistreated all these years?

Quite frankly, such hypocrisy is beyond belief.

The key issue here is not so much tenant gullibility but how pubcos perceive tenants and the extent to which that perception shapes their treatment of them.

To fully understand the pubco/tenant relationship fully therefore we need to look at two key concepts; power and partnership.

Power

Following the Beer Orders the pubcos were accorded a privileged position, one based on trust. They enjoyed the privilege of operating within an environment devoid of checks and balances.

Unfortunately when any organisation is given that degree of autonomy it will inevitably begin to abuse that trust. In many instances of course, that is exactly what has happened.

Pubcos have used their power to 'evolve' a business model that has, over time, had a highly detrimental impact upon tenant profitability, reducing many to a life of penury.

And who is there to monitor them, to ensure fair play prevails? Nobody it seems; there appear to be no constraints. Consequently many pubcos have become a law unto themselves, showing little regard for the welfare of their tenants.

Disputes between tenants and pubco illustrate the power imbalance all too vividly. Invariably one sided affairs, the tenant is under resourced, in no position to offer much in the way of resistance.

Any attempts at meaningful reform therefore must address the power balance that currently exists. Failure to do so will inevitably mean that there will be little respite for the beleaguered tenant.

Of course both the BBPA and BII are desperately trying to convince the BISC that an ombudsman is unnecessary; that 'reform from within' is the best way forward. I would suggest that such a stance has little credibility and that the time has finally come to make the pubcos answerable to an external body.

This is the only way the power imbalance can be effectively addressed.

Partnership

It's a wonderful word isn't it, partnership? Promising so much, yet invariably delivering so little.

Quite simply, for many the pubco/tenant relationship is not a real partnership, well not in the sense that you and I would understand it anyway.

You see real 'partnership' is based on the noble virtues of trust, honour, integrity and respect. Yet when we look at the tied industry today, are such values in evidence? I would suggest not.

In all too many cases the true values associated with partnership have long since discarded; superseded by the less honourable traits of deceit, hypocrisy, intimidation and greed.

Why has the relationship between tenant and pubco deteriorated to such an extent?

Quite simply because in the 'New World' of bonus targets, shareholders and property empires, the tenant is no longer valued, no longer considered to be worthy of respect.

Up and down the country, dedicated men and women work against all the odds to keep their pubs viable in a difficult market. Unfortunately many receive scant recognition for the fantastic service they provide; becoming little more than a statistic, undeserving of support or recognition of any kind.

Ultimately, this industry is not about men in suits, share prices, or bonuses. It's about people; publicans and customers, both of whom share one overriding passion, great pubs.

Consequently tenants are entitled to feel badly let down; both by government and by the supposed 'leaders' of this industry.

Pubs churned or closed down, tenants thrown out onto the streets. How many more lives have to be ruined before somebody has the courage to bring an end to this insanity?

Why don't we start by giving publicans what they both need and deserve; a little bit of trust, honour, integrity and respect.

Surely that isn't too much to ask for, is it?

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