Why the Traditional Pub Has All But Disappeared !!

So you've all seen our pubs disappearing over the past 20 years , squeezed by falling beer sales, supermarket alcohol pricing, rising costs, and perhaps most frustratingly, the complex relationships between tenants and large pub companies.

And while there's been plenty of debate in Parliament and the industry about how to fix it, what you may not know until you read this article, (at which point you'll wonder how you ever survived a pub quiz without it) is something called the Pub Code.

The Pub Code, which turns 10 years old this year (no birthday party planned, fittingly enough), was introduced to make things fairer in theory for pub companies and tied tenants.

At its heart, a tenant landlord, or "tied pub," must buy their beer and sometimes other drinks from the pub company that owns the building. Seems fair enough: landlord gets a pub, pub gets a tenant who sells their beer. Everyone's happy. In theory.

In practice, tenants feel they pay high prices for the beer, high prices for rent, and have little chance of renegotiation once the lease is signed. Less "partnership," more "hostage situation with a beer tap."

So the government stepped in and introduced the Pub Code in 2016 to make the relationship between the two a little more balanced. The system works on just two main principles:

Pub companies must be fair to their tenants

A tied tenant should be no worse off than a "free of tie" tenant

Simple enough on paper. Less simple when the pub company in question is a faceless corporation whose idea of "fairness" involves a lot of small print.

The problem with the Code and to a degree with the licensing trade itself is that many traditional pubs are old buildings in need of substantial repair, and tenant landlords face ongoing battles with pub companies over issues such as repairs and maintenance, unreasonable rent increases, financial burdens, and the ever-present threat of losing their tenancy. Some tenants feel intimidated by the potential costs associated with even exercising their rights under the Code which is a bit like being too afraid to read the rules of a game you're already losing.

Many believe that the Pub Code (created in Parliament by people who presumably know their way around a committee room rather than a cellar) has not effectively addressed unfair practices and has failed to deliver on its core aims.

During Covid, pubs were given a discount on their business rates. This year, there was talk of that discount being removed, resulting in a potential £20,000 per year hike , enough to make any landlord choke on their own cask ale. However, we understand that, for now, that particular plan has been U-turned. Small mercies.

So How Does a Pub Tenant Stay Afloat?

Know Your Numbers — Properly

Make sure you know:

• Your real labour cost (wages + NI + pension + holidays)

• Your true gross profit on drinks and food

• Your weekly break-even point

If you don't know what it costs to open the doors each week, you're essentially gambling with your business. And the house , in this case, the pub company always wins.

2. Use the Pub Code if You're Tied

If you're a tied tenant with a large pub company, you do have rights , even if no one has been particularly keen to remind you of that fact.

The Pub Code exists to ensure:

• You are treated fairly

• You are no worse off than free-of-tie pubs

• You can request Market Rent Only (MRO) in certain circumstances

Many tenants never explore these options simply because they assume they can't challenge the system. At the very least, understand what the Code allows you to do. Knowledge is free. Unlike the beer.

3. Control Labour Like Your Business Depends on It

Because it does.

Labour is often the largest cost in a pub after rent and drink supply. Watch for:

• Overstaffed quiet shifts

• Overtime creeping in

• "Free perks" that quietly cost thousands per year

A £13 per hour employee can easily cost £18–£20 per hour. Multiply that across a week and the numbers stack up faster than glasses on a Saturday night.

4. Keep the Kitchen Commercial

Great food attracts customers. But unprofitable food kills businesses.

Make sure someone in the kitchen understands:

• Food cost percentages

• Portion control

• Menu profitability

• The labour impact of complex dishes

A beautiful plate of food is utterly pointless if it loses money every time it leaves the pass.

5. Run the Pub Like a Business — Not Just a Lifestyle

The most successful operators treat their pub like a business first and a passion second. They monitor:

• Weekly profit

• Labour percentages

• Gross margins

• Cost increases

Hospitality is still an art. But surviving in today's market requires a healthy dose of science as well or at the very least, a spreadsheet that you actually open.

Final Thought

Pubs have always been at the heart of British communities. But the operators keeping them alive today are the ones who combine great hospitality with sharp business thinking.

Pull a good pint. Serve good food. Know your numbers.

And remember: hope is not a business strategy. 🍺