Pubs Advisory Service helping pubs after stadium closure in Upton Park
PUBLISHED: 16:00 13 December 2016
Pub owners around West Ham’s former Upton Park stadium could be released from their contract with their landlord.
The Pubs Advisory Service is aiming to raise awareness of the statutory pubs code, which was introduced last year to regulate the relationship between tenants and owners.
Closure of the Boleyn Ground, in Upton Park, would be classed as a trigger clause and will enable tied pubs which rent from six big companies, including Enterprise, Punch, Admiral and Greene King, to be released from the contracts.
Chris Wright, head of the Pubs Advisory Service, said: “The complex nature of the pubs code means many tied publicans are unable to make sense of their options easily and will be unable to rely upon the government for clarity.
“We are actively seeking out tied pubs affected by all sorts of local changes so they can get back to paying a market rent for their pub and have a fair share of the rewards in running a pub.”
Traditionally, the benefits of being a tied pub means lower rent and a range of benefits and support from the landlord in return for paying a higher price for their beer.
However, if these pubs are affected by a local movement or event and the level of trade has decreased more than expected every month over a 12 month period, they can activate this clause.
This means the pub can pay market rent to the landlord and is free to buy its own beers separately from wherever it likes.
“We operate a helpline for those who want to understand the new code and the benefits it can bring,” Chris added.
Tied pubs rent has been increasing year on year, as have the tied beer prices, meaning the gross profit in beer is getting smaller.
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