Monthly Archives: March 2018

On the 6th April 2018 the new soft drinks industry levy will take effect, latest OnLine Gambling

 

On the 6th April 2018 the new soft drinks industry levy will take effect.

Drinks which will be effected include drinks which meet the following conditions:

  • it has a content of 1.2% alcohol by volume or less
  • it’s either ready to drink, or to be drunk it must be diluted with water, mixed with crushed ice or processed to make crushed ice, mixed with carbon dioxide or a combination of these
  • it’s packaged ready for sale
  • it has had sugar added during production, including pure cane sugars like sucrose and glucose as well as substances (other than fruit juice, vegetable juice and milk) that contain sugar, such as honey
  • it contains at least 5 grams (g) of sugar per 100 millilitres (ml) in its ready to drink or diluted form

The following are drinks exempt which:

  •  contains at least 75% milk
  • are a milk-substitute which contains at least 120 milligrams of calcium per 100ml, for example soya or almond milk
  • are an alcohol replacement drink, for example de-alcoholised beer or wine
  • are infant formula, follow-on formula, baby foods, formulated food intended as a total diet replacement or dietary food used for special medical purposes

Although some obvious drinks such as Coke and Sprite will be effected (with approximately 6.6g per 100ml) less obvious examples such as some tonic waters will be caught also.

The applicable rate depends upon the amount of sugar in the product:

  • 18p per litre if the drink has 5g of sugar or more per 100ml
  • 24p per litre if the drink has 8g of sugar or more per 100ml

A 330ml can of Coke would therefore face a levy of approximately 6p per can.

Money raised by the levy, estimated to be over £500m, will be used to fund sports in primary schools.

The Gambling Commission has now published there review of the Online Gambling industry.

Following the implementation of the Gambling (Licensing and Advertising) Act 2014; which required online Operators whose services are available in Great Britain to obtain an Operating Licence from the Commission, Great Britain now has the largest regulated online gambling market in the world.

The Review includes a number of recommend policies aimed at making the industry safer for customers.

Proposed changes and action include:

  • Further protecting children by banning operators from providing free-to-play demo games until a consumer’s age has been determined.
  • Improving the speed and effectiveness of age verification processes.
  • Ensuring operators set limits on consumers’ spending until affordability checks have been conducted.
  • Tackling unacceptable marketing and advertising and unfair terms, and improving complaints and disputes procedures.
  • Strengthening requirements to interact with consumers who may be experiencing, or are at risk of developing, problems with their gambling.
  • The review also identifies five areas where the Commission is undertaking further work during the coming year.

The Commission is going to:

  • Assess the effectiveness of the current tools available to consumers to manage their gambling.
  • Review gambling product characteristics to identify whether particular features pose greater risk of harm than others.
  • Review our requirements on the protection of customer funds and consider whether there are sufficient protections around dormant accounts.
  • Consider whether gambling on credit should continue to be permitted.
  • Consider whether we need to make changes to ensure that consumers can withdraw funds more easily.

The full report can be found here.

Emerging trends in Italian F&B

Speciality Food

 Emerging trends in Italian F&B at Bellavita Expo London 2018

Bellavita Expo London is back this 17-19 June with over 1,000 innovative food & beverage products – the must-attend trade show for distributors, importers, retail and Ho.Re.Ca. buyers, restaurateurs and chefs.

Bellavita Expo’s Food Academy, Wine & Beer Academy, Mixology Academy and Pizza Academy will host insightful panel discussions and guided tastings organised in collaboration with trade titles and associations including Speciality Food Magazine, Restaurant Magazine, WSET, Harpers and The Buyer.

An Innovation Wine Area will host unmissable wine tastings with WSET and ISWA (Italian Signature Wines Academy, including Villa Sandi, Frescobaldi, Allegrini, Fontanafredda and Feudi di San Gregorio) and the 4th edition of the much acclaimed Bellavita Best UK Sommelier 2018 – The Italian Wine Professional, ISWA award.

Here are some of the categories that will be showcased at the event:

BOTANICALS

Traditional products infused with aromatic botanicals such as orange peel, sage and flower blossoms, adding a new twist to old classics.

AGED FOODS

In barrels, caves or special chillers; Italian producers have mastered the art of ageing, giving foods and beverages unrivalled flavour and texture.

ORGANIC AND NATURAL

Italy is paving the way to organic cultivations, creating natural products that respond to customers’ evolving dietary requirements.

HERITAGE PRODUCTS

Did you know Lardo di Colonnata IGP is aged in Tuscany’s marble caves? Italy has the highest number of European certified products, each with a unique story to tell.

Government publishes Draft Order for the Royal Wedding

Government publishes Draft Order for the Royal Wedding

“The Government has published a draft of the Order, which will extend the hours for the sale or supply of alcohol in premises which have the benefit of a Premises Licence or Club Premises Certificate.  The Order will permit the sale or supply of alcohol until 01:00 on Friday and Saturday and also the provision of hot food and drink, provided alcohol can also be sold or supplied for consumption on the premises immediately prior to 23:00 or beyond at the moment.

The important points to note are that the hours for Regulated Entertainment are not extended, and it only applies to the sale of alcohol for consumption on the premises.

Therefore, any premises wishing to provide Regulated Entertainment into the additional hours, or who want people to take their alcohol outside with them into an area which is not already licensed, such as a beer garden or patio, would need to issue a Temporary Event Notice to provide for this.”

For further information on this or any other legal related licensing issues contact Managing Partner Jonathan Smith on 0115 953 8500 or email j.smith@popall.co.uk.

UKHospitality latest News, Deposit scheme must not increase hospitality burden

 

Deposit scheme must not increase hospitality burden

UKHospitality has warned the Government not to increase costs or restrictions for hospitality businesses through any proposed deposit scheme and called on it to create an opt-out for business where drinks are sold on the premises.

The Government has today announced its intention to introduce a deposit scheme for single-use glass and plastic bottles and steel and aluminium cans.

UKHospitality has warned that any scheme must take into account hospitality businesses that may be disproportionately hit by a cost for single-use packaging.

UKHospitality Chief Executive Kate Nicholls said: “The Government’s proposal for a deposit scheme highlights the need for a united front from the sector to tackle the problem of packaging waste and avoid additional costs for businesses.

“The hospitality recognises the challenge and is already playing an active role in providing solutions and is not underestimating the importance and cost implications.

“There is, however, a genuine worry that this scheme will simply increase costs for businesses while not providing the action required to tackle packaging waste.

“Any scheme needs to make a provision and an opt-out for hospitality businesses to ensure they do not incur a disproportionate and massive cost burden that could potentially drive some employers out of business.

“If the Government is serious about tackling the problem of waste, it also needs to ensure that funds generated by the deposit scheme are ringfenced to provide improved recycling facilities across the UK. UKHospitality will be making this point to the Government, highlighting the positive work already being done by businesses to tackle waste.”

MAC report must help drive hospitality career support 

UKHospitality has welcomed the Migration Advisory Committee’s interim report and pledged its support for the sector through reform to support hospitality careers.

UKHospitality Chief Executive Kate Nicholls said: “The interim report acknowledges the importance of migration to the UK economy and the importance of migration to the UK’s hospitality sector.

“We are particularly pleased that the MAC’s report recognised that the “vast majority of employers do not deliberately seek to fill vacancies with migrant workers’’, but that, in some cases, these are the only available candidates.

“Most encouragingly, the report identifies the need for vocational reform and education within the UK, to help support a vibrant and dynamic hospitality sector that nonetheless sometimes struggles to attract employees from within the UK.

“The MAC’s report highlights the perception of hospitality in other European countries as a first-choice career and the need for action in the UK to adopt the same approach. Hospitality offers a wide range of exciting career options and we need to be proactive in getting that message across to young workers looking to build a rewarding career.

“This change will need to come partly through support from the Government in the shape of a Sector Deal that provides hospitality businesses with an opportunity to grow and offer more.

“UKHospitality is committed to working closely with the Government on this important reform – supporting vocational education, apprenticeships and T Levels – to help promote the sector and secure the future of its workforce following withdrawal from the EU.”

New sector-wide Commission launched by UKHospitality

UKHospitality is launching a sector-wide hospitality workforce commission to promote understanding of the importance and potential of the UK’s hospitality sector.

UKHospitality Commission 2030 will bring together a wide range of hospitality employers and All-Party Parliamentary Groups, along with other stakeholders, industry bodies and authorities, to deliver an employment foundation for the sector. Sector leaders will provide evidence to identify and address the challenges and opportunities facing the sector. The Commission will aim to launch a report of its findings in June, providing recommendations to the government in order to secure the future of the sector’s workforce.

The Commission will seek to provide assured and effective guidance on a range of issues facing the sector including:

  • Promoting careers and ensuring retention in the sector
  • The diversity of the hospitality workforce
  • Education and skills in hospitality

UKHospitality Chief Executive Kate Nicholls said: “The hospitality sector employs almost 3 million people in the UK, it produces £130 billion in economic activity and generates £38 billion in taxes. It is a vast, vibrant and constantly-evolving sector delivering jobs in every constituency. But it is not immune to pressures or changing consumer habits and we need to plan for our futures to ensure it remains robust, relevant and to secure the workforce of the future.

“This is an opportunity for us to bring together sector leaders and policy-makers to promote the great work we do, change perceptions about our industry and to ensure that hospitality businesses are in the best position to succeed decades from now.”

Michael Tomlinson MP, Chair of the APPG Youth Employment added: “Hospitality makes a crucial contribution to employment in the UK and provides fantastic opportunities for young people to learn and develop rewarding careers.

“UKHospitality’s Commission 2030 will enable us to identify the skills that are needed and develop a cohesive plan to offer support and opportunities for young workers.”

Mike Wood MP, APPG Beer Group: “Securing a coherent and accessible pathway for young people into hospitality is a must. We need to make sure that teenagers who are looking to develop a career in hospitality are aware of the opportunities on offer and the skills they can develop.”

Steve Double MP, Chair of the APPG Visitor Economy concluded: “Hospitality is one of the UK’s greatest economic and cultural assets and a significant pillar of our tourism offer.

“A thorough investigation into the future of the sector’s workforce will put us in the best possible position to secure its continued health. It will aid the cementing of its position as an immensely valuable part of our economy.”

The terms of reference for the Commission can be found here and submissions need to be made by 11th May 2018.

Pub Buyers and unpleasant facts (Barrel Dregs)

Barrel-dregs 3

Pub Buyers and unpleasant facts (Barrel Dregs)

Please note, access to this site is totally free if you would like to subscribe (No Charge) on www.buyingapub.com, they are free to be read for your guidance and aimed to help you get through a time of considerable pressure and demand.

Barrel-Dregs has been run for many years, we change all the identifiable details, but give you an insight as to many of the sharp or bad practices by a number of companies, in most cases they are just legal but morally unacceptable.

We have a number of Pub owning companies that we will not recommend, their actions have featured in Barrel-Dregs too many times, we did hope that by highlighting their antics they might change, but in Barrel-Dregs terms “Leopards do not change their spots, they cover them with more Mud.”

There are serious problems in the pub industry at the moment and if any people living abroad want to buy an English Pub, save a bit more money and buy a genuine freehold pub, don’t consider a lease without very expert advice or contact this web site if you would like an informed opinion and where to get advice.

Since Pub Co’s started, an amazing amount of stories have emerged about the way that the industry is being misused by a number of major Pub Co’s, they are not concerned with the welfare of licensees, in fact they are not an essential commodity for the companies but a very expendable commodity.

When I first went into the business the average span for a licensee was three years in a pub and they moved on to a better pub, it was a career for life for most of them. Statistics given to me show that one of the bigger Pub Co’s average changeover of pubs would indicate one year for lessees, four years ago I was told that it was 276 days, the delay would appear to be caused by the lessees trying to sell their leases in a very difficult market, the remainder walked out or were evicted, if these statistics are correct it is a terrible indictment of Pub Co’s method of operation.

If any Pub Co operators read this article, please take note, I would like to be proved wrong, but my sources were responsible people, if it does apply to your company in a greater or lesser degree, have a rethink on the way you operate.
If you have struggled and failed or have an opinion on Pub Co’s please let us know.

The aim of this website was to get through to all the people who drink in bars and pubs etc and the people that own and run them to publish their funny and horror stories.

We now realise that if it is successful, it will also be a great site for useful information for people owning these businesses and making people who are considering buying these businesses taking a more professional approach on how they achieve their aims.

A large number of us are concerned at the failure rate in the industry, caused by a number of reasons, mainly lack of knowledge or misinformation and a shrinking market, with more people using gyms and changing their leisure habits.

Questions and Answers before you consider a Tied Lease LINK

Please Note:- We are not trying to discourage buying and selling of leases, we just want to discourage the legal Rip-Offs that go on, we firmly believe that those taking up a fair Market Rent Option, as it stands at present, could have leases worth serious money, though a number of Pub Co’s will fight tooth and nail to stop this improvement.

If you like the website send it to anyone who will benefit or enjoy it anywhere in the world, we would appreciate stories from any bar or customer anywhere, also a large number of people come back to this country to buy a pub or bar and struggle, purely through lack of information.

FMT and REO (Fair Maintainable Trade, Resonably Efficient Operator)

Barrel-dregs 3

FMT and REO (Fair Maintainable Trade, Reasonably Efficient Operator)

(From the Archives)

An interesting article in the Morning Advertiser from my old colleague Phil Dixon about FMT (Fair Maintainable Trade) and REO  (Reasonably Efficient Operator) or still used by some though undefined, Competent Operator.

FMT that obscenely used title for making wildly speculative estimations of a businesses future business, to ensure that the rental levels confirm the freehold investment values to satisfy bank borrowings, disrearding viability.

REO another totally misinterpreted title, Phil quotes the dictionary explanation or Reasonably Efficient as a moderate operator, not a Retail Genius or 3 star Michelin Chef, which the majority of pub owning companies seem to demand these days as an REO, if they fail to meet this criteria they are listed as a Retailer Failure.

It didn’t used to be like this, the old brewers knew exactly what their market share in an area was, if one pubs business went down another would go up, their FMT’s  collectively throughout their estate would possibly estimate 6-7% increase in brewed products.

Now some of my old friends breweries have been taken over by hard nosed money men, where people count for nothing, FMT’s are guessed at doubling the capacity of the brewery, a physical impossibility.

The world has gone mad, the Government has finally  bowed to pressure to bringing in compulsory legislation and hopefully stop the abuses of honest people and the greed for their money by these soul less people, they are not interested in sales, the BDM’s, BRM’s are the hatchet men, grab the deposits and slap the dilapidations on and get them out, they pay the minimum ingoings, thinking that they have a good deal, no chance these sharks have the legal back up to win every way.

A very apt quote:-

‘To pass a law and not to have it enforced is to authorize the very thing you wish to prohibit.’  Cardinal Richelieu (1585-1642)

By originally failing to accept the BISC’s findings, the Government gave free licence to the unsavoury companies to do whatever they want.

The RICS have been equally complicit in allowing the abuse of their Valuation Guidelines by their senior members, who are above rebuke or forfeiture of membership, the corrupt system continued, the new legislation has not stopped these companies antics backed by very costly lawyers, but limited some of their activities, all totally legal but morally unacceptable.

The BII are worse than useless, having elected to align themselves with the some of the less than desirable Pub Co’s, members count for nothing, they are sadly expendable as I and others found to our cost.

One story on Facebook of a tenant walking out ofhis pub, he had been gone for three months, the lunacy in Brulines were alleged to have sent a missive stating that he had bough 60 gallons out, during the period after he left, there must have been hundreds of drunken rats in the beer store, and so it goes on.

My comments on Phils Article

Has the worm finally turned in his hole, with a total commitment to the reality of the drum that I have been beating for years, welcome back Phil. The RICS Valuation Committee under Rob Mays Chairmanship removed the old Red Books guideline that existing business should be taken into consideration in calculating FMT, this allowed any surveyor working for a pub co and his followers to put any figure they liked on FMT without any justification, hence the massive over valuing of freeholds to raise further funding to buy more pubs, totally ignoring the pubs viability. Surveyors do not run pubs, they have little or no idea of a pubs potential or true viability, tied into local knowledge, they use Cherry Picked Comparables, ignoring the closed pubs which should be factored into their calculations, unfortunately these incompetent surveyors are in a majority and very influential in RICS decisions. In my meeting with the senior beings in RICS, I pointed out that a pubs existing business is its market share at that time in an area, any growth is at the expense of another pub or pubs and are they going to reduce the rent on the other pubs if the first pub meets the FMT decreed, not on your life, that’s retailer failure according to their paymasters, the Pub Co’s. The market is shrinking, in fact it is nudging towards freefall for many pubs, training is inadequate, the trading conditions that many naive people sign up to are pure fantasy land. I have said for many years if all the FMT’s were added together we would need treble the brewing capacity. If rents came down, rates also, discounts were sensible or even minimal or non existent as they used to be, we might bring prices down and bring customers back, smoking however distasteful it is killed many pubs core businesses, every pub needs a core business, people make people.

Barfly

Questions and Answers before you consider a Tied Lease LINK

Please Note:- We are not trying to discourage buying and selling of leases, we just want to discourage the legal Rip-Offs that go on, we firmly believe that those taking up a fair Market Rent Option, as it stands at present, could have leases worth serious money, though a number of Pub Co’s will fight tooth and nail to stop this improvement.

The views expressed are not necessarily the editors and www.buyingapub.com accepts no responsibility for them, we do try to avoid offensive or litigious statements being made. They are written by concerned professionals in the industry who feel that these issues should be raised to ensure that all licensees are made fully aware of many hidden pitfalls.

copyright (©)

 

 

 

Always have everything in writing (Barrel Dregs)

Barrel-dregs 2

Always have everything in writing (Barrel Dregs)

Please note, access to this site is totally free if you would like to subscribe (No Charge) on www.buyingapub.com, they are free to be read for your guidance and aimed to help you get through a time of considerable pressure and demand.

Barrel-Dregs has been run for many years, we change all the identifiable details, but give you an insight as to many of the sharp or bad practices by a number of companies, in most cases they are just legal but morally unacceptable.

We have a number of Pub owning companies that we will not recommend, their actions have featured in Barrel-Dregs too many times, we did hope that by highlighting their antics they might change, but in Barrel-Dregs terms “Leopards do not change their spots, they cover them with more Mud.”

An elderly licensee that I had dealt with most of his time as a licensee, had his pub taken over by one of the larger Pub Co’s. Prior to the takeover his area manager came in and told him that they had made an error on his accounts, they should have charged him so much extra a barrel for buying local real ale and the figure was several thousand pounds.

Since it was their problem he would have words with the director and write it off since the company was being bought out, he came back and said that it had been agreed and not to worry about it.

The company changed hands and the first thing the new company did was produce a bill for the outstanding amount, he said it had been written off, they said that they had no record of it and panic set in.

The new company promptly sold on a package of pubs to another company his being one of them, the new area manager came in and wanted payment of the outstanding debt, which increased at every change of ownership, within a fortnight and the licensee asked for my advice and I put him in touch with a specialist who resolved the problem, in theory the end of a nasty story.

The new Pub Co wanted to upgrade the premises and let it at a higher rent, they agreed an acceptable termination figure for the licensee to give up his lease and just before he left, they then slapped him with a massive bill for dilapidations, wiping out most of his money. Sadly this is not a solitary case, I have seen several more with unscrupulous landlords.

However friendly a Business Development Manager is, always insist on confirming everything in writing, even confirming what he or she said in an email with a follow up letter, if you get no response.

Their word may be his bond, but it frequently isn’t by his superior.(CR)

Questions and Answers before you consider a Tied Lease LINK

Please Note:- We are not trying to discourage buying and selling of leases, we just want to discourage the legal Rip-Offs that go on, we firmly believe that those taking up a fair Market Rent Option, as it stands at present, could have leases worth serious money, though a number of Pub Co’s will fight tooth and nail to stop this improvement.

copyright (©)

Digital taxation focus cannot not delay urgent business rates reform, also welcomes APPG report

 UKHospitality: digital taxation focus cannot not delay urgent business rates reform, also welcomes APPG report

UKHospitality today welcomed the European Commission’s publication of proposals aimed at a fair taxation of the digital economy and online platforms.

The proposals are designed to ensure that online platforms, including ‘collaborative’ economy related platforms and online market places, pay proportionate taxes in Europe, corresponding to the value created in the different European markets in which they are operating.

UKHospitality is calling on the Government to acknowledge the recommendations and push ahead with reforms at earliest opportunity to address the tax inequality being faced by high street businesses compared to online businesses.

UKHospitality CEO, Kate Nicholls, said: “Taxation methods must evolve to keep pace with the impacts of the rapid rise in digital commerce and the Commission’s proposals are a welcome acknowledgement of this.

“The Government needs to act on these recommendations at the earliest opportunity, to begin tacking the tax inequality being faced by high street businesses, particularly the hospitality sector. The most acute inequality is in businesses rates and the Government must act to address this imbalance which sees businesses in town and city centres all around the UK shouldering a disproportionate tax burden.

“The fiscal neutrality of business rates sees an ever-dwindling number of high street businesses each paying more into a fixed pot. This system fundamentally does not work and needs a complete overhaul to ensure that online businesses pay their fair share.

“Proportionate revenues from digital companies can be used to relieve the burden on companies hardest hit by business rates, while the long-overdue root and branch review of the system, as promised by the Government, takes place.”

UKHospitality welcomes APPG report

UKHospitality has welcomed a report from a group of MPs that has investigated the impacts of the sharing economy.

The interim report from the All Party Parliamentary Group for Tourism (The Sharing Economy: Maximising Benefits while Reducing Adverse Outcomes), has been heralded as a step towards better understanding of local and national economic and social impacts, to inform measures to ensure a more level playing field between competitors.

The ‘home sharing economy’ has grown rapidly and regulations have failed to keep up as a consequence. The UK is lagging behind its European counterparts, who have introduced regulation in an effort to ensure compliance with safety measures as well as protect traditional housing stock.

UKHospitality provided oral and written evidence to the report, raising concerns that the hotel sector is unfairly taxed compared to sharing economy platforms, giving these providers an unfair fiscal advantage. 

UKHospitality Chief Executive Kate Nicholls, said:  

“UKHospitality has been calling for action in a number of areas that the Government must address.

“Many online platforms are headquartered abroad and pay comparatively little UK Corporation Tax as a result. They often pay far less in business rates, given that they do not own many physical assets, compared to traditional accommodation providers, who are also subject to a rate of VAT of 20% – amongst the highest in Europe and making UK hospitality businesses uncompetitive compared to their European competitors.

“Visitors and communities are being put at risk when legal safety requirements are reliant on the goodwill and compliance of hosts rather than independent checks and enforcement.

“We are pleased that this report highlights these disparities and recommends a level playing field for all accommodation providers in terms of regulatory compliance and taxation. We look forward to liaising with policymakers to make this a reality”.

Alex Midgley

Jefferson Communications

RICS and the definition of Competent Operator

Barrel-dregs 3

The rental levels set by the RICS are for a Competent Operator (CO) or Reasonably Efficient Operator (REO).

The RICS do not, nor ever have run pubs and very few Chartered Surveyors have ever dirtied their hands with such hard work.

The Valuation Committee consisted of members whose main income is derived from perpetuating these rental levels and supposed high impossible demands of a Competent Operator (CO) or Reasonably Efficient Operator (REO).

Times have changed since this was originally written, the domination of Pub Co representation on the RICS Valuation has changed, there are surveyors who now act for lessees and tenants.

The BII was an august body and should have been consulted as to the scholastic and professional experience required to meet the standard required for a Competent Operator, which they were not.

The CEO of the BII at the time, declined to raise this issue with RICS.

However a number of senior members of the BII agreed that the standard required to meet the definition of Competent Operator would be three years profitable trading with advanced qualifications or five years profitable trading with basic qualifications, which are the requirements for an MBII. None of the Pub Co’s, without exception put their trainees through any training and experience sufficient to meet this criteria, in other words the deck is totally stacked against any would be lessee without any serious degree of managerial experience.

Sadly the BII is no longer a body of influence in many people’s opinion in the industry, following a succession of CEO’s, who had very little or no understanding of the problems in the industry.

The big question is, are the Pub Co’s guilty of fraud, misrepresentation or what???

They are all knowingly setting people up in an impossible situation, that is, all the companies that have followed the RICS valuation system, which the majority have.

I was a CMBII and I wouldn’t touch a pub lease in it’s present form, I would like to have seen the BII confirm the definition of Competent Operator to the RICS, I have tried and the RICS would not talk to me.

Certainly a BII Graduate Member or an Associate Member does not fit the criteria of Competent Operator, taking a few minor qualifications and a licensing qualification.

To confuse the situation, certain Pub Co’s have introduced Reasonably Efficient Operator (REO), possibly because of a total failure to meet the perceived standards of a supposed Competent Operator, however many of us have found the name has changed, with very little difference to the rental demands.

The licensing qualification is not like a driving test, it is more akin to studying the highway code booklet, you need good managerial working experience, pulling a few pints is the decorative side.

The qualifications used by the Pub Co’s will only qualify their trainees as BII Graduates and at best Associates, the majority would require a minimum of three years serious working experience to achieve vaguely suitable experience.

I suggested that a letter from everyone to the BII asking them to define Competent Operator along the requirements of an MBII and write to the RICS confirming this as being the standard, the RICS are not qualified to dispute this with the BII, it would have been interesting.

As long as this crazy rental valuation system is in place the failures, bankruptcies etc. will continue, the Pub Co’s have had serious problem over their debt structure and little space for movement, but the would be good lessees/tenants are getting streetwise, unfortunately they are being replaced by much older desperate people and totally inexperienced people who should never be in the business.

Hopefully it may change for the better with the new legislation, a voluntary code has not worked.

Note:- Since originally writing this article I received an invitation to the RICS to discuss the vagaries of rental levels and over valuation of leases/freeholds and certain changes have been made, though more changes are still required.

For every change certain companies try to block or avoid the change.

Unfortunately we would not recommend anyone taking a pub lease without consulting a professional who acts solely for lessees and tenants.

If you are hell bent on taking a pub, go to the Family Brewers and take a tenancy or a job leading to management in a pub.

I bought genuine freehold freehouses and built them up, the rents and draconian trading conditions of too many tied leases were far more costly than a commercial mortgage and the small print of your responsibilities when selling the lease.

Contact Chris for advice at PAS Link

Reasonably Efficient Operator Link

If in doubt email info@buyingapub.com

copyright (©)

UKHospitality warns of unemployment increase and urges Government to act on rates relief

UKHospitality warns of unemployment increase 

UKHospitality has warned the Government that it must act to lower costs for businesses or risk further joblessness and loss of vital hospitality businesses.

The warning follows today’s data release showing an increase in unemployment of 24k. Last month, sector-specific figures showed a decrease of almost 54k employed in the last quarter of 2017.

UKH Chief Executive Kate Nicholls said: “Today’s figures do not make for reassuring reading for the Government or our industry. Although the total number of unemployed remains relatively low, an increase in the rate of unemployment points to employer uncertainty and continually increasing barriers to investment.

“Last month’s figures show that the hospitality sector has been hit particularly hard. Businesses that have driven the revitalisation of high streets since the recession are now, once again, feeling the squeeze.

“We have repeatedly told the Government that the sector is facing a substantial barrier to further growth, mainly in the enormously disproportionate business rates bill that continues to cripple businesses. This will only be exacerbated when the increase hits in April; in all likelihood, leading to further unemployment as businesses struggle to swallow these cost burdens.

“If the Government does not act to support businesses by cutting costs, then we are only going to see a continued deceleration of growth in the sector and a further increase in the rate of unemployment.”

UKHospitality urges Government to act on rates relief

UKHospitality has written to the Minister for Local Government Rishi Sunak MP, calling for an overhaul in the system of discretionary business rates relief and urging the Government to undertake a full review of the entire rates system.

The letter highlights flaws in the system that was introduced last year and raises concerns that relief distributed by local authorities may be in breach of EU state aid rules.

UKHospitality has urged the Government to reassess the application of state aid rules to ensure that hospitality businesses receiving reliefs are not penalised and to undertake the promised review of the entire system at the earliest opportunity.

UKH Chief Executive Kate Nicholls said: “The introduction of discretionary relief for businesses was well-intentioned, but it has caused hospitality businesses a number of significant headaches.

“Local authorities were, in many cases, slow to begin distributing the relief and we saw numerous examples of councils attaching completely arbitrary stipulations to the reliefs. These stipulations ran counter to the spirit of the fund and unfairly penalised businesses that were entitled to relief.

“We are also concerned that the application of the relief may unintentionally breach state aid rules designed to avoid a distortion in competition in the EU. We have informed the Government that we believe discretionary rates relief should not fall into this category and that hardworking hospitality businesses should not be penalised in any way for accessing relief to which they were entitled.

“We have called on DCLG to act to ensure that hospitality businesses that contribute so much to their local communities are not punished and reiterated our call for a full review of the business rates system that is long overdue.”

UKHospitality has written to the Minister for Local Government Rishi Sunak MP, calling for an overhaul in the system of discretionary business rates relief and urging the Government to undertake a full review of the entire rates system.

The letter highlights flaws in the system that was introduced last year and raises concerns that relief distributed by local authorities may be in breach of EU state aid rules.

UKHospitality has urged the Government to reassess the application of state aid rules to ensure that hospitality businesses receiving reliefs are not penalised and to undertake the promised review of the entire system at the earliest opportunity.

UKH Chief Executive Kate Nicholls said: “The introduction of discretionary relief for businesses was well-intentioned, but it has caused hospitality businesses a number of significant headaches.

“Local authorities were, in many cases, slow to begin distributing the relief and we saw numerous examples of councils attaching completely arbitrary stipulations to the reliefs. These stipulations ran counter to the spirit of the fund and unfairly penalised businesses that were entitled to relief.

“We are also concerned that the application of the relief may unintentionally breach state aid rules designed to avoid a distortion in competition in the EU. We have informed the Government that we believe discretionary rates relief should not fall into this category and that hardworking hospitality businesses should not be penalised in any way for accessing relief to which they were entitled.

“We have called on DCLG to act to ensure that hospitality businesses that contribute so much to their local communities are not punished and reiterated our call for a full review of the business rates system that is long overdue.”