Having studied the so called method of rent assessment used by the Pub Co’s for Rent Reviews.
Firstly all rents are supposedly worked out by Valuers and BDM’s on the future sustainable earnings potential by a competent operator or an alternative method of operation??? Valuers, at least qualified valuers in the main have never run a pub and would have virtually no idea how to expand a business without personally running it, understanding the local problems, features, advantages and disadvantages, BDM’s the majority have very little hands on experience, certainly neither are capable of being called a competent operator, yet these people dictate rental levels that are totally unsustainable in the majority of pubs, causing extreme hardship and lack of profitability to the majority of lessees.
They are reluctant to define a competent operator, in the words of one of the BII Vice Chairman, someone with at least three years profitable experience and some of the BII advanced qualifications or five years profitable experience with basic qualifications, he should know and I agree with him.
Yet these companies across the board put all new lessees through a basic five day course with the APLH, and maybe food hygeine or cellar management if they are lucky. This at the greatest stretch of the imagination does not make a competent operator. They are then put into pubs with rent levels based on this goofy method, it is totally obscene and the fall out factor is enormous and dire, most people lasting 12 to 18 months before their money runs out. As an experienced operator I would not touch the majority of them without accurate up to date accounts that prove the rent is payable with a profit, not some “will o the wisp” calculation ignoring the existing business turnover.
Bringing any Rent Review seriously into question.