Star Pubs & Bars to scale back tapered rent relief

By Emily Hawkins contact

- Last updated on GMT

Tapered plan: Star Pubs & Bars has revealed how it will charge operators for rent for the next two months
Tapered plan: Star Pubs & Bars has revealed how it will charge operators for rent for the next two months

Related tags: Property

Heineken’s pub arm Star Pubs & Bars has outlined the next phase of its tapered rent relief plan for operators throughout September and October - including a further £4m investment in rental concessions.

Star will cut existing rent reductions for leased and tenanted pub operators in the autumn and supplement operators' increased monthly contributions using a £4m pot.

Its 50%, 75% and 90% plus rent reductions will scale down to 40%, 55% and 70% respectively in September and then 30%, 35% and 50% in October.

The operator of around 2,500 pubs said most of its sites were trading again and had benefited from continued Government support including a business rates holiday, a VAT cut, and the furlough scheme.

The pub company initially suspended rent collection, trade debt and associated charges on 18 March, ahead of Prime Minister Boris Johnson ordering a national shutdown of pubs and bars across the country on 20 March to limit the spread of coronavirus.

Following that, Star announced rent reductions to all leased and tenanted pubs on an individual basis on 8 April.

It said its rent concession spending had totalled around £21m when it extended rent relief for licensees throughout July and August. 

Tapered relief

Lawson Mountstevens, managing director of Star Pubs & Bars said the company would continue to review its overall support.

He said: “We have invested heavily in helping licensees through these difficult times. Throughout, we have been transparent and consistent with the rent reductions that we have offered.

"We hope this latest tapered rent relief will help licensees plan ahead as much they are able to, and we will continue to review our overall support as we have done since the beginning.  

“Now seems the right time to offer tapered support as the feedback from our estate has been encouraging overall with consumer confidence growing and many licensees trading near to pre-lock down levels.”

Sorely missed

The director said despite social distancing posing a huge challenge to pubs there was cause to stay positive about the future of the trade, in an interview with The Morning Advertiser​ during the lockdown period.

He said: “You know, the great British pub has been through some bumps in the road before and it will be here long into the future. There’s one thing that being in lockdown has made everyone realise, it’s just how brilliant pubs are and how much we missed them. 

“There’s a great opportunity there for us to capitalise on that into the future. But we recognise that, you know, we’re going to have to adapt.”

Related topics: Star Pubs & Bars

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