Securing Fair MRO Rents for Top 50 Gastropubs: Greater Freedom, Higher Profits

The Canton Arms in Stockwell, recently ranked No. 22 in the Top 50 Gastro Pubs, sought to go free-of-tie to gain greater flexibility, improved margins, and control over its supply chain. However, the landlord’s initial MRO rent proposal was significantly inflated, threatening to offset the financial benefits of going free-of-tie.

As part of a gastro pub group, the operators also wanted to secure a fair MRO deal for The Magdalen Arms in Oxford, ensuring the group’s long-term profitability and ability to source the best products at competitive prices.

Recognising the strategic importance of MRO to the group’s growth, MDE Pub Consultants was engaged to:

✅ Challenge the inflated rent proposal and negotiate a fair market rent.

✅ Ensure that the MRO lease terms remained commercially viable.

✅ Advocate for the group as a whole, ensuring consistency across multiple locations.

We carefully analysed market rents for comparable free-of-tie gastropubs and presented evidence-based arguments that highlighted the flaws in the landlord’s valuation. By leveraging our expertise in lease negotiations and deep understanding of the Pubs Code, we pushed back against unjustified pricing strategies and secured realistic rent levels for both pubs.

Through expert negotiation, we successfully reduced the proposed MRO rent to a fair market level, ensuring that both The Canton Arms and The Magdalen Arms could transition to free-of-tie agreements without financial strain. As a result:

✅ The pub group now has greater flexibility to source the best suppliers and improve margins.

✅ The business is more profitable, with significant savings on tied product costs.

✅ The group is looking ahead with confidence, knowing they have long-term control over their leases and supply chain

For top gastropubs like The Canton Arms and The Magdalen Arms, moving to a free-of-tie model provides greater control, increased profit margins, and the ability to curate high-quality, locally sourced menus. However, securing an MRO lease at a fair rent is crucial—without expert negotiation, landlords can inflate rents to make MRO unviable.

At MDE Pub Consultants, we specialise in navigating the MRO process, ensuring tenants achieve the freedom and flexibility they deserve—on fair terms.

“Moving to a free-of-tie model was a key strategic decision for us, giving our pubs the flexibility to source the best products, improve margins, and take greater control of our business. However, the initial MRO rent proposals were completely unrealistic, threatening to make the transition unworkable.

Michael and MDE Pub Consultants fought our corner, skillfully negotiating a fair and sustainable market rent, ensuring that both The Canton Arms and The Magdalen Arms could go free-of-tie without financial strain. Thanks to their expertise, our group is now more profitable, more independent, and better positioned for the future. I’d highly recommend their services to any pub tenant looking to break free from restrictive ties and secure a deal that actually works for their business.”