Pubs code data published by BBPA

By Emily Hawkins contact

- Last updated on GMT

Transparent data: pubcos regulated by the pubs code have started publishing monthly figures on responses to MRO-applications
Transparent data: pubcos regulated by the pubs code have started publishing monthly figures on responses to MRO-applications

Related tags: Bbpa, Pubs code

Pubcos regulated by the pubs code have started publishing monthly data on the numbers of market rent only (MRO) notices issued, conversion rates into MRO agreements and other trends.

The figures are being published on the British Beer & Pub Association (BBPA) website following a request to share them publicly by the pubs code adjudicator (PCA).

In May 2018 the six big pubcos - Admiral Taverns, Ei group, Greene King, Marston’s, Punch, and Star Pubs & Bars - agreed to publish data on responses to MRO-applications from tenants and their outcomes.

Brigid Simmonds, chief executive of the British Beer & Pub Association said: “The BBPA is seeking to provide transparency to support the PCA and pub companies in their work to deliver pubs code commitments.”

'Transparency'

The PCA said it will use the data to inform regulatory decisions relating to ensuring tied pub tenants have access to MRO.

A spokesperson for the pubs code adjudicator’s office said: "The pubs code adjudicator has encouraged the industry to publish its own data and welcomes the decision to be proactive and transparent in doing so.

“The PCA has analysed both the MRO data published by the BBPA and the information submitted by the pub-owning businesses in their compliance reports.  

“The PCA has written to individual pub-owning businesses asking for responses to a series of detailed questions on MRO and other aspects of their compliance reports.”

A round of bilateral meetings with pub companies’ CEOs scheduled for October will see the PCA discuss the responses.

Full responses

The total number of full responses to MRO notices issued between July 2016 and 2018 is 668.

The number of tied rent reviews concluded following MRO negotiations increased from 30 in 2016 to 181 in 2017.

Some disparities between pubcos were revealed in the data.

In a two-and-a-half-year period, Admiral Taverns only had three tied rent reviews concluded following MRO negotiations, while Ei Group had 162.

However, Simmonds warned it was difficult to explain disparities between the results of different pubcos.

She said: “It is difficult to compare the statistics on a company-by-company basis, for example, due to differences in the sizes of their estate, business models and types of agreement."

Differences

Ei Group, the largest pubco, is a predominately leased and tenanted business, explaining its higher number of MRO requests.

Admiral Taverns said the numbers represented its operation of a predominantly tenanted estate with relatively few leases, with shorter term tenancies and subsequently fewer rent reviews.

A spokesperson for the chain added its business model predated the introduction of the pubs code and “placed a strong emphasis on building long-term progressive partnerships with our licensees, based on mutual trust and respect”.

“This fairness of approach is evidenced by the fact that as at today’s date we have had no referrals to the PCA.

Related topics: Legislation

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