Neame 'more optimistic than ever' about tenanted sector

By Ruth Williams

- Last updated on GMT

Related tags: Neame chief executive, Shepherd neame, Investment

Jonathan Neame said the time is right to invest in pubs
Jonathan Neame said the time is right to invest in pubs
Shepherd Neame chief executive Jonathan Neame has said he’s more optimistic about the tenanted pub sector now than at any point during 23 years in the industry, and the time is ripe to make investments.

Neame said he is “unashamedly pro” the traditional three year tenancy model as the most suitable arrangement to give the best offering to the tenant and customer.

“I would say I’m probably more optimistic now about the potential for the tenanted sector than I ever have been in the 23 years that I have been in the industry and the reason for that is because I see great opportunity for investing in improving our pubs, our services and our offer and thereby driving higher returns for ourselves than at any stage during my time in the industry” said Neame, speaking at the Tenanted Pub Summit.

Neame said the time is right to invest in both the pubs and the licensees, which Shepherd Neame has done by offering licensees business support packages to control and reduce costs, passing promotional and marketing packages from third party suppliers on to tenants and inducting new licensees with bespoke training for the first six months that includes a fully-audited induction trail.

“We’ve reviewed our offer to include attractive pricing of beer, affordable rent, flexible short term agreements a return for both parties and an incentive for both parties to make a joint investment for mutual benefits.”

In response to “a rapidly changing consumer market” the company has invested in enhancing consumer experience through refurbishment of both interior and exteriors; aligning its portfolio of pubs with consumer needs in terms of inventory and beer quality; and focused heavily on the customer service and product offering to drive footfall.

On the future of the tenanted model versus franchised pubs, Neame said: “I agree the franchise model does have some merit in parts of our sector but I do not agree necessarily that it will become the norm.”

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2 comments

Unfounded Optimism?

Posted by robert sayles,

“..I’m probably more optimistic now about the potential for the tenanted sector than I’ve ever been in the 23 years that I have been in the industry...”

Uncannily similar to the sentiments recently voiced by Geof Colyer.

http://www.morningadvertiser.co.uk/General-News/Pub-sector-in-best-shape-for-three-decades

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Divorced from all Reality

Posted by robert sayles,

“..I’m probably more optimistic now about the potential for the tenanted sector than I’ve ever been in the 23 years that I have been in the industry...”

Sounds to me like he inhabits the same fantasy world as Geof Colyer.

http://www.morningadvertiser.co.uk/General-News/Pub-sector-in-best-shape-for-three-decades

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