ADMIRAL TAVERNS–PROCEEDING TO THE
SCENE OF THE ACCIDENT
One of Pot Boys moles in Admiral Taverns, who really does have a social conscience, came up with the following. This should be contrasted with the careing touchy feely Mr Paveley, CEO of Admiral, who came over as the squeaky clean Mr Nice in a recent article in The Morning Advertiser. The responsible face of the Pubco business model. Seeing as how he has had the conversion to end all conversions, being previously a dyed in the wool Punch board member. Nice. PB was asked to run the numbers. Well as good as done and they don’t work. Insanity rules Mr Paveley. To flesh out the background ! Norreys Barn is an estate pub in Wokingham. Its been through a few hands recently and Admiral are advertising the place as a fresh three year tenancy. You can get the full details on their website and the pub has references on a simple Google search. The letting details confirm full tie and a rent of £15K and a modest ingoing of £5Kwith F & F at £10K. My mole tells me that the total sales are approximately £135K-£140K if you look at it with rosey glasses. No food, entirely booze. After all its an estate pub with no passing traffic. Its the hub of that particular community and offers a valuable level of control for responsible drinking within the pub environment. So far so good.
The locals have got together and made a request to Wokingham District Copuncil under the latest freedom to buythingey to lease the pub themselves and a Committee will run and operate the pub. At that point, PB is not going to commentn on their proposal or how well the Committee will perform because PB has no idea who is going to run things. Anyway, Admiral are prepared to grant the starry eyed locals a free of tie lease but only on the basis (so my mole tells me) of replacing the wholesale income that they will lose, something like 120 barrels at perhaps £250 per barrel or roughly £30K. So the rent they want is now to be £45K. Thats a rent of 32% of top whack total sales. Insanity or what !!
Point of the story runs much deeper and into the waters of the hopes of a partial/full supply tie release following the BISC hearings (see Pot Boys passim). What Admiral have done is NOT to seek a market rent, but a replacement for their income lost. If this cunning plan is not recognised for what its worth, Admiral will have properly advertised the Norreys Barn to let, foundnobody for it, either tied or not and proven to the market that it can’t be let. Bingo,the place is not a viable business,planning permission goes in on the back of that assumption and the pub closes. Neat little line of logic is that and totally proves the vast difference between Market Rent and Replacement of income rent. Two totally different rentals and poles apart. The BISC committee are being urged to do the tie release, but only on the basis of an increase in rent at market levels.
PB only hopes that the good local worthies do not proceed swiftly to the scene of the accident and actually take on Norreys Barn at the insanity rent proposed.
Back to the comfort of a cool cellar.
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