Brakspear Pub Company has announced plans to manoeuvre the majority of its 148 tenanted pubs onto six-year lease agreements as a way of offering ‘long-term business stability.’
The agreements are designed to encourage tenants to make long-term business decisions and maintain their current volume of sales through fixed rental payments and a barrelage discount incentive of up to £60 per 36 gallons.
Tom Davies, Brakspear commercial director, said the initial feedback from the long-leased pubs had been ‘overwhelmingly positive.’
“It signals our commitment to work in partnership with our tenants to build a sustainable, successful business, rather than focus solely on short-term gains. We have designed the agreement and incentives to support our tenants and we now reward them not just for achieving absolute growth, but for maintaining current volumes, which we think is a fair response to the current trading environment.”
Earlier this month Brakspear agreed to follow the retail price index (RPI), even if it fell into negative growth, for its tenants currently on an RPI-linked rent agreement as a ‘way to help’ them through the recession.