A recent survey carried out by the PCA involving 388 tied pub tenants has revealed that they remain unaware of the rights they are afforded by the Pubs Code.
Most worryingly, according to the survey, only 36% knew they have a right to request a Market Rent Only (MRO) agreement to potentially go free of tie.
This comes as no surprise to us at MDE Pub Consultants.
We have been actively contacting tied pub tenants over the last few months ourselves, and have found similarly low levels of awareness. More concerning for us, is the amount of misinformation that exists. Many pub tenants are convinced that a MRO rental would be unaffordable, and many have been quoted extortionately high figures from their Pub Owning Businesses.
From our experience, in most cases a MRO rental will be higher than the passing tied rental – but given the enormous margin gain from being Free of Tie – there is massive profit improvement potential in almost all cases we’ve dealt with.
Paul Newby, pubs code adjudicator said “more needs to be done across the industry to provide more user-friendly information and greater clarity on MRO isuses”
This has inspired us to launch a quarterly free MRO workshop event, during which we will speak from experience of our real-world dealings with the Pubs Code Legislation. We will also have a Q&A session so we can assist with as many issues as possible.
So hopefully we will be coming to a town near you soon! We hope to see you, and if you wish to be kept informed please join our mailing list via the link below: