Dozens of pub landlords are celebrating a last-minute reprieve today as major breweries including Greene King and Adnams have slashed rents during the winter lockdown.
Greene King, the UK’s largest pub retailer, and Stonegate Pub Company both confirmed charges for tenants will be reduced to 10 per cent.
Meanwhile Adnams, which owns seventy pubs across Suffolk, Norfolk and Essex, said today it will not charge its tenants any rent through the second lockdown, with immediate effect, after it emerged pubs will not be able to serve takeaway alcohol.
Admiral Taverns and Marston’s were also included in the breweries which announced they would be providing rent discounts until December 2.
It comes as the British Beer and Pub Association (BPPA) warns that up to 12,000 pubs in the country are at risk from permanent closure.
Dozens of pub landlords are celebrating a last-minute reprieve today as major breweries have slashed rents during the winter lockdown (pictured: a closed pub in London’s West End today)
It comes amid fears that hundreds of bars may never reopen, as pubs, restaurants and non-essential shops close after lockdown came into effect at midnight on Thursday
PPA’s Chief Executive, Emma McClarkin, said: ‘As our sector enters this second lockdown, we are fearful for the future.
‘Sector member research estimates as many as 12,000 pubs are at risk from permanent closure unless the Government provides a longer term support package for the sector.
‘Countless breweries and suppliers to pubs are also at very real risk of closing for good due to this second lockdown and its longer impact.’
Meanwhile Nick Attfield, Adnams’ director of properties, said: ‘We’ll do what we can to help our tenants through the lockdown.’
But he added: ‘Any financial help we get from the government is very welcome.’
Adnams made a similar decision in the first lockdown in March but Mr Attfield said it had been easier this time around.
‘It’s more straightforward because we’ve done it before. But from an emotional and personal perspective of course, it’s still complicated.
‘At least this time we understand the furlough scheme. Back in the spring, we thought we were telling people they were losing their jobs.’
He said the government’s decision to ban pubs selling takeaway alcohol was ‘a big frustration’.
‘During the first lockdown, takeaways provided a viable income stream for many of our pubs. And if I’m being honest, I think it provided sanity for our publicans.
‘We’re still waiting for clarification on a lot of points but from previous experience, we know it can sometimes come two or three days later.’
In a letter sent to tenants in England on the night of the announcement, Greene King Pub Partners managing director Wayne Shurvinton confirmed the discount will apply regardless of whether or not English-tied pubs choose to offer a takeaway service.
Greene King, the UK’s largest pub retailer, and Stonegate Pub Company both confirmed charges for tenants will be reduced to 10 per cent during the second lockdown (file photo)
Marston’s (brewery at Burton-on-Trent, above) and Admiral Taverns were also included in the breweries which announced they would be providing rent discounts until December 2
The letter said: ‘All of us hoped that this day would not come and there are no words that can adequately describe how it feels right now to be back in this position again.
‘However, first and foremost I wanted to update you on Greene King Pub Partners’ support for you during this initial closure period. We remain committed to providing industry leading support and standing shoulder to shoulder with our tied partners to support you as much as we can.
‘From the date that the lockdown begins on 5 November all tied partners will receive a rent credit of 90 per cent up to and including 2 December 2020.’
Stonegate Pub Company said it has provided financial support in an overall package, worth over £42.5million.
Nick Light, Managing Director of Ei Publican Partnerships, the brewery’s leased and tenanted business, said: ‘We continue to stand by our publicans, and we are taking the responsibility of supporting our businesses very seriously as the trading landscape continues to change.
‘Once again, the hospitality industry is being told to bear the financial brunt of further regulations in the Government’s response to COVID-19.’
He added: ‘The Government’s decision at the weekend to also not allow alcohol to be part of any takeaways from pubs yet permit the purchasing of alcohol from supermarkets and delivery services is a double standard.
‘The British Beer and Pub Association has estimated that over 70million pints of beer were poured down the drain in March, given the short notice this time, there will be huge amounts of further wastage, if the Government does not change this ruling.’
Adnams, which owns seventy pubs across Suffolk, Norfolk and Essex, said today it will not charge its tenants any rent through the second lockdown in England
The reduction in rent charges will take place with immediate effect, after it emerged pubs will not be able to serve takeaway alcohol throughout the second lockdown
James Calder, chief executive of the Society of Independent Brewers, said the decision to ban takeaway alcohol sales was ‘baffling considering supermarkets will presumably still be allowed to sell packaged beer, while small breweries and pubs will not’.
He added: ‘It is nonsensical to impose these new restrictions when pubs have time and time again proved that they are Covid-secure, both during lockdown when takeaway was their only option and since pubs re-opened on July 4.’
Adam Button, head of sales at Ipswich-based brewery Calvors, said as much as 90 per cent of its beer will be going into cans rather than kegs – in part due to the ban on takeaway sales.
‘Some of what we’re brewing is going to go into kegs ready for when pubs reopen in December. Most of the rest of it will continue to go into cans.’
He said the brewery has already received orders from supermarkets and stores that have experienced ‘an uptick in demand’ and has more meetings with customers lined up.