PREPARING ABERDEEN PUBLICANS FOR THE SCOTTISH PUBS CODE WITH MDE PUB CONSULTANTS 

Aberdeen’s vibrant pub scene is on the cusp of a significant transformation, as the new Scottish Pubs Code, effective on 31 March 2025, reshapes the relationship between tied pub tenants and their landlords. This landmark legislation, designed to foster fairness, transparency, and greater control for publicans, presents both opportunities and complexities. For Aberdeen’s publicans, understanding and proactively adapting to these changes is crucial for long-term success. This is where the expertie of specialists like MDE Pub Consultants becomes invaluable. 

The Scottish Pubs Code: A New Era for Tied Tenants 

For years, tied pub tenants in Scotland have operated under agreements that often placed them at a disadvantage, with obligations to purchase products exclusively from their landlords, sometimes at inflated prices. The Scottish Pubs Code, enshrined in the Scottish Pubs Code Regulations 2024, aims to redress this imbalance by introducing a robust framework of rights and protections. Key provisions of the Code include: 

Market Rent Only (MRO) or Free-of-Tied Option 

The landmark Market Rent Only (MRO) rights, a cornerstone of the new Scottish Pubs Code, are set to fully open on June 30, 2025. This is arguably the most significant change for tied pub tenants. Essentially, it’s your right to convert your existing tied lease into a free-of-tie lease in Scotland. At certain key “trigger points” (such as the halfway mark of your lease term, or even up to six months before), you can formally request an MRO agreement. Under an MRO lease, you will pay a fair market rent for the property but have no obligation to purchase products from your landlord, effectively ending the traditional tie. This newfound freedom allows you to source supplies from any provider, potentially leading to substantial cost savings and improved profit margins. The Code explicitly guarantees every tied tenant this opportunity to “move to a market rate lease that allows other suppliers,” significantly levelling the playing field for your pub business.  

Guest Beer Agreements 

The Pubs Code now grants you the power to diversify your offerings! You can sell at least one guest beer of your choice, right alongside your landlord’s products. The only condition? That guest beer must come from a smaller brewer, defined as one producing 5,000 hectolitres or less annually. This exciting new right means you can introduce a popular local brew or a unique craft beer, giving your customers more reasons to visit and boosting your trade in a way tied tenants never could before. We’ll show you exactly how to exercise this right effectively, from navigating the full process to helping you identify and pick qualifying brands that will thrive in your pub. 

Fair Rent Assessments With Transparency 

Landlords are now obligated to provide detailed rent assessment proposals, including profit and loss forecasts, ensuring greater transparency in rent calculations. This allows tenants to challenge unfair or unreasonable rent hikes with evidence. Pub-owning businesses must provide comprehensive information to tenants, including details of pricing and comparable pub data, enabling more informed decision-making. 

Support From The Independent Scottish Pubs Code Adjudicator 

The Scottish Pubs Code Adjudicator (SPCA) oversees the Scottish Pubs Code’s operation, arbitrates disputes, and investigates breaches, providing an impartial mechanism for resolving conflicts in all tied pubs in Scotland. While these provisions offer immense potential for Aberdeen’s publicans to improve their profitability and autonomy, navigating the intricacies of the Code requires careful consideration and expert guidance. 

The Role of MDE Pub Consultants: Bridging the Gap for Aberdeen Publicans 

While the Scottish Pubs Code brings clear benefits, it also adds new layers of legal and commercial complexity for publicans. Understanding your rights, negotiating effectively, and making informed decisions about your future under these new regulations can feel overwhelming. That’s precisely where MDE Pub Consultants steps in. With deep expertise in the UK pub sector and a specific focus on the Scottish Pubs Code, we become an indispensable partner for Aberdeen publicans. 

We offer a comprehensive suite of services, tailored to help tied tenants in Aberdeen and across Scotland maximise the benefits of the new Code: 

• Expert Pubs Code Guidance: Providing clear, concise explanations of the Scottish Pubs Code, translating complex legal jargon into actionable advice. We help publicans understand their rights and obligations at every stage. 

• Market Rent Only (MRO) Negotiation: The core strength lies in guiding tenants through the MRO process. From submitting the initial MRO notice to negotiating favorable free-of-tie lease terms, our specialists have a proven track record of securing significant rent reductions and achieving true free-of-tie agreements for their clients. 

• Rent Review and Lease Renewal Advice: Assisting publicans in challenging excessive rent increases and structuring leases for long-term success, whether they choose to remain tied or transition to an MRO agreement.They conduct thorough analyses of proposed rents and benchmark them against market data. 

• Dispute Resolution and Arbitration Support: In instances of disagreement with pub-owning businesses, we offer robust support through formal dispute resolution processes, including arbitration with the Scottish Pubs Code Adjudicator, ensuring a fair outcome. 

• Strategic Business Planning: Beyond compliance, MDE Pub Consultants team helps publicans leverage the new Code to formulate strategic business plans that enhance profitability and ensure sustainable growth. This includes advising on product diversification and supply chain optimisation made possible by the new freedoms. 

• Pre-Entry Training and Ongoing Advice: For new tenants entering tied agreements, we can advise on the mandatory Pre-Entry Training requirements and provide ongoing support as they navigate their tenancy. 

The Aberdeen Publicans Need to Act Now 

The Scottish Pubs Code is not merely a legal document; it’s a practical toolkit for building a stronger, fairer, and more profitable future for Aberdeen’s pubs. By partnering with MDE Pub Consultants, publicans can confidently navigate this new landscape, ensuring they are well-prepared to seize the opportunities it presents and safeguard their businesses for years to come. The time to act is now to secure a more equitable and prosperous future for Aberdeen’s cherished establishments. 

Don’t let the new Scottish Pubs Code catch you off guard. Take control of your pub’s future. Contact MDE Pub Consultants today for a confidential consultation! 

Email: info@mdepc.co.uk

Phone: 0330 088 3133