Turning the Tables: Using MRO to Challenge Unfair Rent Increases

About This Case

Faced with a steep rent increase, The Sheephaven Bay in Camden used the MRO process as leverage. MDE Pub Consultants challenged the landlord’s valuation, forcing a renegotiation and securing a stronger position for the tenant.

The Challenge

A Rent Hike Threatening Profitability

The Sheephaven Bay in Camden, a thriving, high-volume pub renowned for serving the best pint of Guinness in London, faced a significant rent increase at their latest rent review.

Following a period of strong growth in trade and volume, the landlord sought to capitalise on this success by proposing a substantial rental uplift. This posed a serious risk to long-term profitability, despite the business performing well. The tenant needed a way to push back against the proposed rent increase and secure a sustainable deal.

The Strategy

Leveraging the MRO Process to Secure a Better Tied Deal

Rather than accepting the rent increase without challenge, MDE Pub Consultants advised the tenant to initiate the MRO process, creating leverage by:

Triggering an MRO request, presenting the option of a free-of-tie lease.

Using MRO as a negotiation tool to force the landlord to offer better tied terms.

Challenging the rental valuation, arguing that the increase was excessive despite the site’s success.

By demonstrating that the free-of-tie alternative was a viable route, we forced the landlord to reassess their position and adjust their offer to retain the tenant.

The Outcome

A Rent Reduction Despite Business Growth

Instead of simply avoiding a large rent increase, our strategic use of the MRO process actually resulted in:

A reduced rent, despite the landlord initially demanding a substantial increase.

A more competitive tied agreement, with improved discounts on beer.

Higher profitability for the tenant, proving that even within a tied framework, the right deal can strengthen a pub’s financial position.

By leveraging MRO rather than rushing into an unfair agreement, we turned a potential financial setback into a strategic win, allowing The Sheephaven Bay to continue thriving while reducing costs.

Key Takeaway

MRO Isn’t Just About Going Free-of-Tie—It’s a Powerful Negotiation Tool

This case demonstrates that even if tenants don’t go fully free-of-tie, the MRO process can still be a highly effective way to negotiate better tied terms and protect profitability. Landlords often adjust their offers when faced with the possibility of losing a tenant to MRO, creating an opportunity for a more commercially viable agreement.

At MDE Pub Consultants, we help tenants understand and utilise the MRO process strategically, ensuring they never accept an unfair deal.

📣 A Word from Pat, Tenant at The Sheephaven Bay, Camden

“When we were hit with a huge proposed rent increase, it felt like a penalty for our own success. We knew we needed expert support to fight for a fair deal, and Michael and MDE Pub Consultants delivered exactly that.

By leveraging the MRO process, they challenged the landlord’s valuation, forced a better tied agreement, and—against all expectations—actually secured a rent reduction despite our increased trade. This has been a game-changer for our profitability and ensures that The Sheephaven Bay remains in a strong financial position for the future.

I can’t recommend MDE Pub Consultants enough—without them, we’d be paying significantly more rent and making far less money.”

💬 Facing a rent review? Get in touch to see how we can help secure the best possible outcome for your business.

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