Business description

Our business is owning and operating a substantial estate of pubs. The larger portion of the estate comprises leased and tenanted properties, with the remainder being wholly owned, managed outlets.
 
Leased and tenanted pubs
 
In our leased and tenanted pubs, we play no direct managerial role and the licensee (leaseholder) has full responsibility for day to day operations, giving them lower fixed costs than managed portfolios. This allows us to support them through a lean head office and field based team. This business model is also likely to present a lower risk to our revenue streams as licensees are required to pay a negotiated rent based on a proportion of the pub’s profitability. This allows both company and licensee to share in the pubs success, incentivises licensees to develop their business and provides a framework for the company to continually invest in the fabric of the estate to improve both service standards and property values.

Managed pubs
 
Our managed pubs are both owned and directly managed by the company, with all pub teams employees of the company. The resulting higher fixed costs are offset by the retention of all of the profit from all of the pubs' commercial activities.