Beating Unfair Rent Hikes to Go Free-of-Tie

About This Case

For historic pubs like The Eight Bells in Fulham, moving to a free-of-tie model offers a chance to improve profit margins and gain flexibility over suppliers. However, when their landlord proposed a drastic rent hike, the financial viability of this transition was put at risk.

The Challenge

Protecting Profitability Amidst a Drastic Rent Hike

The Eight Bells in Fulham is a historic, wet-led pub with a loyal customer base and strong trade. The operators wanted to go free-of-tie to gain greater flexibility over suppliers and improve profit margins. However, the landlord demanded a substantial rent increase, making the MRO lease financially unviable.

With the risk of an unfair rent increase wiping out the benefits of going free-of-tie, the tenant turned to MDE Pub Consultants to challenge the proposed rent and secure a deal that would keep the business profitable.

The Strategy

Expert Negotiation & Rent Challenge

Recognising the importance of the Eight Bells’ wet-led model, we:

Challenged the landlord’s excessive rent proposal using detailed market comparisons.

Presented a case based on true trading conditions, proving that the proposed rent did not reflect a realistic free-of-tie market valuation.

Highlighted the sustainability of the site, ensuring that the rent allowed the tenant to remain profitable while benefiting from supplier flexibility.

Using our deep expertise in MRO negotiations, we pushed back against the landlord’s attempt to inflate the rent beyond a fair market level.

The Outcome

A Business-Transforming Victory

Through strategic negotiation and expert representation, we secured a fair MRO rent that allowed the Eight Bells to go free-of-tie without financial strain. As a result:

The pub’s profitability increased by 150%, thanks to reduced supplier costs and better margins.

✅ The landlord’s inflated rent proposal was dismissed, ensuring a sustainable and fair rental agreement.

✅ The tenant now has full control over their product range, allowing them to offer better value and quality to customers.

Key Takeaway

Fighting for Fair Rents is Crucial for Pub Success

This case highlights how landlords often inflate MRO rents to discourage tenants from going free-of-tie. Without expert representation, many tenants end up with unrealistic rental costs that erase the benefits of breaking the tie.

At MDE Pub Consultants, we specialise in challenging excessive rent demands, ensuring tenants get a fair deal that allows them to thrive.

A Word from Jonathan Woollard

Tenant at The Eight Bells, Fulham

“Going free-of-tie was a game-changer for The Eight Bells, but the landlord’s initial rent demand was completely unrealistic and would have made it impossible. Michael and MDE Pub Consultants fought our corner brilliantly, challenging the inflated figures and securing a fair market rent that allowed us to break the tie without financial strain.

Thinking about going free-of-tie? Contact us to secure the best possible outcome for your pub.

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