Landlords go to parliament for a "fair pint"

At a time when a revolt is seething over the MP expenses scandal, it seems appropriate that another system which seems to be designed to benefit distant men and women in suits, rather than local communities, is under the spotlight: the tied pub sector.

The landlord or landlady of a tied pub, of which there are many in North Devon, is in some ways similar to the franchisee of an American fast food chain; they work for a corporation who controls their everyday business from afar, purely for profit.

Yes, a tied landlord might have more freedom than a McDonald's manager to change some aspects of their business, such as decor for example, but, crucially, they cannot buy stock direct from wholesalers. And there is the rub: if you are in charge of a tied house, you are forced to buy your beer via the pubco you work for, who charge you a higher rate, and that will be on top of the "rent" which always seems to be rising well above inflation. And that's before we get on to the "pub" firms who, entirely legally, apply to have pubs demolished or turned in to flats.

Well, the system might seem ludicrous and unfair, but many businesses are like that and remain highly profitable and popular. But the tied sector does not seem to be working. Pubs are closing at record rates. A national institution seems in peril. Landlords are quitting because they can't make a decent living and local people are losing something which should be their birthright, not an optional extra. Not an extra because proper local pubs are much more than businesses; they are community centres, historical gems, nourishment for the soul and icons of English history: they are too precious and imperfect and invaluable (in all senses of that word) to be left to certain decisions by certain philistine corporations.

Publicans, usually a conservative tribe by nature, are so fed up they are planning to take their battle to parliament this week, to meet MPs and lobby for an end to the tie system. Brian Jacobs, a founder member of the Fair Pint Campaign, has said: "For too long the voice of tenants hasn’t been heard at Westminster." Well it will be now, and our luxury-loving MPs should find themselves in a listening frame of mind.

Strange times, but this problem is not a new one. By the mid-1970s, a contemporary book reveals, when the current tied house system was cemented, the number of brewers in the UK had shrank from thousands in the Victorian era to a mere dozens, following the natural business tendency to concentrate, rather than proliferate, variety. This is when the Campaign for Real Ale (Camra) (I am not a member) started to fight back. It is only in the past five or ten years that the microbrewery boom has begun to significantly redress the imbalance which had been in favour of the giant brewers and pubcos; I think it is fair to say we are living in the best time for beer for many, many decades, while, paradoxically, many of our pubs are in crisis, for a variety of reasons, not just the pubcos.

Landlords of tied houses in North Devon have told me that they are being squeezed by the pubcos until the bottle corks squeak. Of course, the pubco suits wheeled on to national radio programmes disagree with the complaints and claim they provide the opportunity for landlords to make a decent living, and without taking on 100% of the risk of any business. I'm sure some pub managers do well out of the deal. There is disagreement about how badly tied landlords are paid; they claim it can be £12,000 a year for a 100-hour week, while the pubcos say it is usually more than double that amount, excluding free accommodation at the pub.

Other people connected with the pub trade have told me a fair-enough "shake out" is going on in the industry and some of the landlords who fail will deserve to fail, perhaps a small minority were incompetent, or even lazy, or simply providing a service nobody wanted to use, no matter how much they strained their sinews to succeed. I think it is fair to say we do not have an overall shortage of pubs in England; we do, however, in my ever-growing experience have a shortage of top drawer pubs. 

In the end I find it hard to argue with the landlords who say they should have the choice not to be tied to a pubco's every demand and whim. Why should they? And, after all, when it comes to fairness, and who owes who what, what have the pubcos ever done for us? Yes, I agree with the pubcos when they say they are not the entire cause of the woes of the English pub, but they are hardly the fountains of joy either. There are too many medicore or downright godawful pubs in all corners of the country, and the causes of their unpleasantness might well be many, but I can't remember the last time I went in to a free house that deserved to close.

A potent mix for the future?

The financial pages of the national press this weekend have contained interesting news for the pub fanatic. Punch Taverns and Enterprise Inns, two of the major pub companies, who have numerous pubs in North Devon, have seen their shares in freefall. Their landlords will tell you, usually in private, that this is no surprise at all; the tied house system obliges landlords to pay over the odds for their beer, making it even harder for them to compete, particularly in a recession.

In addition, if landlords had greater control over their buying and selling, I think our pubs would improve overnight; the bland corporatisation of our pubs is disheartening, at the least, anyway and perhaps the potent mix of a sinking economy and the struggling pubco sector could lead to a welcome resurgence of the free house. Imagine! Goodbye uniform decor, ale, music, prices, service. Hello character, fun, community, history, and...profits for our local pubs. But I remain pessimistic, at least in the short term.

Wetherspoon's has launched what seems to be a price-cutting war, with 99p pints, which few free houses could ever compete with. I have said before, JDW sells outstanding beer, but its pubs have zero attraction otherwise; they, and their ilk, seem to be pure function, zero poetry. That is not surprising, because they are often micro-managed, to all intents and purposes, by suits clutching armfuls of spreadsheets and PR garbage.

I only wish the dead hand of the suits had not rested so heavily on our beloved pub trade; the wizards in charge of these pub property dynasties rake in millions, while our landlords often earn less than the minimum wage. And we are left with pubs that are more like an outlet of McDonalds than the Rose and Crown. "Theme bars" have only one theme: frail crapness runs through them like letters in Blackpool rock (which has lots of theme bars).

There also seems little we pub-goers can do to pioneer a revolution in pub ownership, other than supporting our free houses by going to them and perhaps lobbying for a law to oblige pub companies to give landlords the option of buying their own beer direct from brewers. 

I wouldn't be surprised if the pub firms started trying to cut their losses; the long-promised decimation of the pub trade might be about to happen quicker than we thought.

What will happen then could herald a brilliant future for pub lovers and landlords.

In the meantime, we need to keep it local and support our pubs as best we can, particularly the good ones.

I find myself wrestling with the age old battle of love and hate, and contradictory passions in one pub

An ill wind was wailing through the world economy, through all our bones and the future bones of all our future generations for ever, as we made our way through half-deserted streets to one of the most popular pubs in North Devon and Torridge.

I was feeling a bit depressed about the future for our pubs because I had recently met a North Devon pub landlord who was about to declare himself bankrupt and close his business. He said he was being squeezed from all sides; by the pub company, the smoking ban, and by cheap supermarket booze of all types and horrors. But despite all that he could have made a go of it, maybe, if only he had had more of one vital business ingredient: customers.

Sometimes it is good to acknowledge the blindingly bloody obvious. Pubs are closing because customers are not using them, and other pubs are still busy and profitable, because customers are still using them. So how about a case study? One of the most popular pubs in North Devon is the Wetherspoon's outlet The Panniers, in Barnstaple. It will never close. It will survive the recession. It would survive a nuclear war. And on a dank Thursday evening this month, the place was so ramjam pack-a-doodled that when I arrived with my friend we took the only two remaining chairs.

I was still chewing over all the stinking doom in the news. Pub doom. My own eyes weren't helping. Walking to the Panniers through the glistering Barnstaple town centre streets, all but deserted, we passed empty pub after empty pub.

But not the Panniers. There can only be two reasons why the Panniers is such a success; good beer and cheap prices. Because the place has atmosphere the way big brand keg lagers have taste, the way Gordon Brown has a radiant smile, the way David Cameron has sincerity, the way house prices are clever, the way plastic window frames are acceptable in a public house context (no PVC frames at the Panniers by the way, fellow window freaks).

In fact, if you have ever been in a Wetherspoon's pub anywhere in the queendom you will know what the Panniers is like. They are all the same.

Same hotel lobby decor, same food, same prices. The only thing to tell you you are not in Nottingham or Norwich is the local accents of the many punters.

The beer was superb, as good as a good rub down in an ice house by a crackling wood blaze while the huskies keep guard against the glacier pirates. I had a crisply glorious pint of Smoky Joe. My friend had a soothing draft of something dark and powerful. He was satisfied with it and it made him philosophical. As we sat and talked - mostly about babies - I noticed we were surrounded by adults of all ages, most of whom were eating curry from metal pots. If I had been tiresome enough to ask them how often they came here, they might have said: "every week".

If you are interested in good, low priced ale, the Panniers is a perfect hostelry. Cheap grub too. Probably tastes quite nice. And, you know, I hate the place.

I hate it because it is the bland pub universe cousin of a corporate fast food chain outlet. The place has a sort of psychic anti-character impact on the space it contains, with its school dining hall ambiance. There is no sense of community. Good pubs make you feel like you could own them, in some vicarious customer way, if you were a regular.

In terms of character alone, look at a pub I have wrote about before on this blog: The Reform Inn, in Pilton. It doesn't sell cheap curry and it does not welcome children or have a wide variety of the finest beers known to man and beast. But in all its eccentric, even ugly, brilliance, the local boozer offers a rare sanctuary from the blanding-out influence of the boardroom folk. What choice we have left is debatable. But there are still good local pubs who deserve our custom, even if it's just £3 a week.

We drinkers vote with our pint pots and our wine glasses, and the Panniers was as full as can be on Thursday last week. The beancounters will tell you this success was proof of armour against the ill wind blowing through the economy.

I kept thinking of my ideal pub.

An MP's view of the pub trade...

North Devon MP Nick Harvey (who is my MP), is deputy chairman of the all-party parliamentary beer group. He told the North Devon Journal: “I am acutely aware that these are difficult times for the beer and pub trade. Most recently I and my colleagues have been lobbying the Government, with Early Day Motion 2159, protesting at the detrimental effect of supermarket alcohol prices.

“Pubs are closing at an alarming rate of five a day, compared with three a day last year, four a week the year before and two a week the year before that.

"Barnstaple is no exception to this trend with the recent closure of several longstanding establishments in Boutport Street and elsewhere.

“Tax hikes combined with the ban on smoking in public places and supermarkets selling beer as a significant lost leader, to the extent that it is cheaper than bottled water, have all had a negative impact on a struggling industry.

“While pubs have served a historic role, off-trade has always existed alongside, providing consumer freedom of choice. However, economically off-trade, thanks to the supermarkets, is now clearly a serious challenge with an annual turn over of about £13bn almost matching pub sales.

“I and the APBG will keep pressing the Treasury, Department of Communities and Local Government and Health regarding alcohol duty being a blunt instrument to deal with binge-drinking (the real target being supermarkets selling alcohol below cost price), the positive value of pubs to our communities and the need for regulation and licensing not to be so burdensome as to push yet more pubs out of business.”

There are 57,000 pubs and bars in the UK, contributing £18 billion to the economy and employing 650,000 people. The Business and Enterprise Committee is currently holding a new enquiry into the role of pub companies (the last was conducted in 2004), with submissions closing at the end of September.

According to Mr Harvey, the pub companies have failed to adopt previous recommendations that rents should be sustainable, tied tenants should not be worse off and that the upward-only rent reviews and gaming machine tie must cease.

The British Beer and Pub Association reported this week that beer sales between July and September fell by 7.2% compared to the same period in 2007.

Beer sales in pubs dropped 8.1% and sales in supermarkets fell 6%. BBPA chief executive Rob Hayward said: “Sinking beer sales and the record five pubs a day closing is a barometer of the UK economic climate. But any prudent diagnosis would also identify the specific impact of the budget’s 9% beer tax increase.”

This story appeared at the same time:

By Adam Wilshaw

GOOD local pubs which sell quality ale and decent food in a friendly environment will thrive despite the recession, according to a North Devon campaigner.

North Devon Campaign for Real Ale (CAMRA) member Terry Burrows said some pubs in the area were closing or bereft of custom, but the pubs he cherished most were popular and relatively profitable.

There are fears the traditional English local pub is facing an uncertain future, because of cultural and economic changes. Mr Burrows was one of a number of pub-goers, landlords, and brewery firms the Journal spoke to this week about the health of the pub trade in North Devon and Torridge.

Recent warnings about any widespread demise of our local pubs seem premature, given the responses we received. It can also be difficult to establish precisely why a pub closed: Was it because the rent was too high? Too few drinkers? Beer too expensive? No food? Too much food? No “smoking garden”?

Drinkers lured away by cheap supermarket beer? But there is little doubt our boozers are facing a number of problems, and the industry is having to work hard to entice in customers. North Devon MP Nick Harvey (Lib Dem) and Torridge MP Geoffrey Cox (Conservative) have both attacked the Government for increasing beer duty, for example.

Mr Burrows said: “From our experience, the good pubs, that offer what the community wants and are involved in the community, are thriving. It’s not all doom and gloom.” He said ever-increasing beer tax and cheap alcohol in supermarkets were harming our pubs. In addition, pubs which could not offer a smoking area were struggling to keep customers.

On the other hand, sales of cask ale continue to increase year-on-year. Pub landlords and landladies reported a mixed picture.

Jeff Sweet, from the Tavern in Diamond Street, Barnstaple, said his business was still busy at weekends with loyal regulars. And the landlord of a larger Barnstaple pub, who did not want to be named, said pubs had to increasingly offer “added extras”, such as live music, or they would go under. He too said many drinkers seemed to be switching to spirits which are, by alcohol volume, cheaper than ale.

Chris Franks, who sells beer wholesale from 37 independent breweries to pubs around North Devon and beyond, said: “Nothing has changed an awful lot, the ones who put effort in are doing all right, but no one is making a lot of money.” He also pointed out that North Devon and Torridge have a number of excellent breweries, including Country Life in Abbotsham and Barum in Barnstaple.

But Debbie Furnifer, landlady of popular local hostelry Marshalls, in Boutport Street, Barnstaple, said the pub had been quieter than usual in recent months. “I think people are scared to spend their money,” she said. “The regulars are still coming in.”

Few pubs are freehold businesses; the majority are owned by larger firms who lease the premises. Punch Taverns, which has a number of pubs in the area, said it was “passionate about safeguarding the future of the great British pub”. A spokesman told the Journal: “Pubs across the country face a challenging trading environment but we continue to work closely with our licensees in North Devon and across the country to help them find new ways of improving their business, developing their retail proposition and financial stability. This ranges from identifying new or improved food offers to developing other areas of their products, offers or service. Punch also has an industry leading support and training programme for licensees.

“Within our leased estate we have some great examples of pubs that have introduced new facilities, such as Post Office counters, which help them to become focal points of the communities they serve. The North Devonshire area has a small conurbation with limited road access and seasonal trade.

"The pubs have to continually strive to be the best they can be to attract customers and keep them coming back. Offering value for money and having an offer that suits the needs of the local market place is key to success. We have some fantastic outlets in the area which are really bucking the economic trend. The London Inn, Braunton, and the Rock Inn, Georgeham, both have great licensees at the helm who have developed an offer that is just right for their local market place. They consistently deliver excellent levels of customer service and are highly successful as a result.”

But some of the people pulling the pints were less optimistic.

Lee Sycamore, landlord of the Old Market Inn in Holsworthy, said: “With high street spending at its lowest for years, pubs closing down at a rate of five a day, and beer sales for the period of July to September down by 7%, a very grey picture has been drawn over the licensed trade. “The credit crunch has seemed to have hit us all. Speaking for ourselves, as a freehold pub, the trend on most sales seem to be up on last year so far. Beer and food sales have increased significantly, however wines and spirits have fallen dramatically.

"I can only put this down to customers being less extravagant at the end of the evening by cutting out on that last night cap, and saving a small amount by not having a bottle of wine with their meal, just one glass instead.”

But he said next year “could be worse than ever”.

He added: “Calls have gone out to the Government not to put the normal taxation on beers, wines and spirits next year in their budget. A public house is a vital hub for communities through both good and bad times.”

Arthur Scrine, landlord of the Patch and Parrot in Cooper Street, Bideford, said: “We have the same old crowd in here. We’ve got all the golden oldies and the credit crunch has not affected them coming in. The price of beer may have gone up, but we are still the cheapest pub in Bideford.”

Mark Birch has been the landlord of the Black Venus Inn, in Challacombe, on Exmoor, for the past four years and believes the current economic downturn had not had much effect on trade, although he had a stark warning.

He said: “It’s about a level par to last year although there are definitely not as many tourists around. People still have the same money to spend but they are just being a bit more careful with it.

"I don’t think the increase in beer duty will affect us at the moment but, if the Government insists on maintaining the current 4% levy, I think it will kill off the industry.”

Jon Hutchings, from the White Hart hotel in Holsworthy, said: “Generally the pub trade is down however I feel its all about innovation. What with the smoking ban last year and with cut price alcohol sales in supermarkets we are in a difficult time. “Late night weekend trade is down however it is also picking up again but this is due to new ideas and promoting events at weekends such as live music and DJs.

“We are at a time where you cannot expect business to just walk in the door. You have to go that little bit further to entice the customers in. Our food trade is on the up with particular attention focusing on local produce.”

INTERLUDE: Where armchairs are used as dining chairs, and where no grace or rhythm interrupts the baleful mediocrity

If you are a cross-eyed lightbrain cretin with a gold medal in mediocrity, you will love Mambo in Taunton.

If your head wobbles because your skull is crammed with blancmange rather than human brain, you will love Mambo in Taunton.

If you greedily swallow every line of lies ever dispensed by marketing chimps, you will love Mambo in Taunton.

If you worship at the altar of fashion, you will kneel with love under the bamboo parasols at Mambo in Taunton.

If you have intelligence and judgement the way wolves have mathematics and poetry, you will love Mambo in Taunton.

If you think Jeremy Clarkson improves things in general, you will love Mambo in Taunton.

If you think Foster's is good beer, you will love Mambo in Taunton.

If you are a quiffy great honk-faced mummy's boy with a belligerent manner and a stenchful sense of entitlement, you will love Mambo in Taunton.

If you think Tesco lasagne is better than sex, you will love Mambo in Taunton.

Indeed.

And a final thought:

When the guttersnipe poison pigeons look even more suicidal than usual and the natural exuberance of human optimism flails gnarled and angry and selfish, you know Summer 2008 has fallen like an itchy grey cloak about your ears, and you know you are in a McPub in Taunton.