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FSB: Tied pubs want to cut loose

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Research by the Federation of Small Businesses (FSB) has found many small pubs tied to a larger owner want to break away.

Its study of 500 landlords - all running pubs currently connected to a larger pub company - asked respondents about the rent they pay and how much of their profits go straight to the owning business. This was then converted into an aggregated score - with a negative score indicating unhappiness from landlords in regards to the companies' rent prices and profit percentages.

The worst owning companies were Enterprise Inns and Punch Pub Company, each scoring -0.5, with Star Pubs and Bars not far behind them at -0.3. The three best organisations listed were Marstons (0.9), Greene King (0.4) and Admiral Taverns (0.1).

Landlords under Enterprise Inns - owners of approximately 6,000 pubs in the country - believed they have it the worst when it comes to rent and 84 per cent felt too much was taken in profits.

When it came to Punch Pub Company - owners of around 4,000 locations - 81 per cent said it takes too large a cut of revenue.

These findings suggest such smaller operations may be short of money due to their owners taking larger cuts, but a recent report from npower also suggests cash is being wasted in electricity usage. The energy provider's study of various small businesses - including pubs - found over £700 could be saved through staff awareness on energy consumption.

Many small pubs also said being free would allow for changes in their service, with 62 per cent claiming they would provide a wider range of beers, with 91 per cent stating a desire to work with microbreweries.

FSB's national chairman John Allan said: "The results speak for themselves. The big [owners] are as bad as each other and their tenants don't feel they are getting a fair deal. They want to give their punters more choice as well as interesting craft beers too."ADNFCR-16001031-ID-801649883-ADNFCR


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