Following the results of its recent tenant survey, independent family brewer, Hall and Woodhouse, has introduced a new three year tenancy agreement, which will be supported by a one year support package and a dedicated website at www.badgerpubs.co.uk.
The Business Partnership Agreement is protected under the 1954 Landlord & Tenant Act. It will allow the Business Partner (formerly known as the tenant), a number of excellent new initiatives, such as the right to renew with no rent reviews, full supply agreement with benefits and a gaming machine profit share of 67%, which is unusual as the industry norm is generally a 50/50 split. The new agreement also outlines Hall and Woodhouse’s commitment to take care of all structural repairs. A deposit of £7,500 alongside the value of the Trade fixtures and fittings is required from the Business Partner to secure the business.
Under the new terms, the rent will be set before the start of the agreement and will be subject to an annual adjustment inline with inflation (if inflation is negative then the rent for the business partner will be lowered inline with inflation). What’s really nice about this new agreement is that there will no longer be a rent review. If the business partner wishes to continue for a further three years, then the rent is linked to inflation only, which then gives them the freedom to plan for the future, safe in the knowledge that they’re not going to be penalised for their success.
The supply agreement takes the hassle out of ordering stock for the business partner who will need to make just one call, one order, one payment and one delivery, backed by the support of their highly regarded Distribution Team, Beer Quality Advisors and Technical Services Team.
The new agreement is complimented by a first year support package which aims to act as a support net for the business partner and therefore ensure every chance of success. This includes a pre take over meeting with the Area Manager who will provide detailed information on everything required prior to getting started. During months one to three, meetings are conducted on accountancy and stocktaking, which will then move to a quarterly basis for the remainder of the year.
Adrian and Carol Beer from the Gatwick in Horley have been with Hall and Woodhouse for 3 years and will be switching to this new agreement in the next few months. “We are really excited to be moving to this new agreement, the Gatwick is our first pub and we are really enjoying the lifestyle it offers us. This agreement will enable us to make more profit through the pub and the fact there is no rent review is a fantastic opportunity for us and all other business partners to grow the business without incurring a rent increase.”
Matt Kearsey, Badger Pubs Director explains “We have launched this new agreement to support our business partners during these challenging times. By offering business partners support aimed at building their profits, I believe we make running a pub a desirable career/life style choice. Our agreement has been compiled with the business partner in mind. We have taken the decision to remove the rent review to make it absolutely clear that we are committed to sustaining not penalising our business partner’s success so that they can operate pubs in which we can all take pride.”
Customer service is key to the success of every business, even more so during these difficult times for the pub industry. After the first four months in the business, Hall and Woodhouse will organise for a mystery customer to visit the pub and then feedback the findings in an effort to help the business partner exploit their strengths and address any possible weaknesses.
The Area Manager is a crucial link to the success of the business in the first year and will be on hand throughout from the first day, continuing fortnightly for the first three months. Six months after the start date, Hall and Woodhouse conduct a full business review to assess how the business is progressing and agree any further support required.
In addition to the support from the Area Manager, business partners will also have the support of an Area Surveyor whose role is to ensure that any repairs and maintenance issues are carried out effectively. It is also the responsibility of the Area Surveyor to conduct an annual inspection of the property to monitor the condition of the pub.
Energy bills form a significant part of a pubs overheads and Hall and Woodhouse are once again committed to working with the business partner to control these costs. An energy consultant will visit the business as part of a free service on the first day to offer advice on the best deals available.
