The licensed premises industry

One of the biggest reasons why publicans go out of business is the amount they pay in rents and business rates. Through our deep specialism in this area of the law we can help reduce these costs dramatically. 

Background – Pub companies

While, since the early 90s, measures have been introduced to make the market for on-license beer more competitive, publicans are still hard-pressed. Tenants now pay rent to pub companies instead of brewers but they are still committed to restrictive supply agreements. They are also tied into long-term leases, the rents of which are based on a percentage of turnover based on the number of barrels sold to them by the pub companies, and not profit. The average tenant holds a lease for 3 years while most leases last 5 years or more.

The situation needs urgent change and our work in this area of the law provided the impetus for a House of Commons inquiry into Pub Companies.

What we can do

Our extensive experience of working in the industry means that we can help tenants of pubs save thousands of pounds on their rents. We are the leading lawyers in the country with the expertise to achieve these savings.

• A publican in Bristol renewed a 5-year lease.  Old rent - £20,000 per annum; his Landlord was asking for renewal rent of £24,000; we got him a reduction to £16,000, with no rent reviews over the new 5-year term.  His saving for the 5 years - £40,000.
• A pub/club in London renewed a 5-year lease.  Old rent was £62k; his Landlord was asking £82k in the new lease; we got him £46.5k over 5 years with no reviews.  His saving over 5 years - £177.5k.

Along with this service on rents, we can also help with significantly reducing business rates for both tenants and freehold pub and club owners.

On a more general note, our expertise to publicans as general commercial and property  lawyers means we can also provide a range of “add-on” services including advice on leases generally, employment matters and supply contracts.

If you think we might be able to help or would like to find out more then contact us.