Great accomodation and the Pub Co machine tie scandal
July 6th, 2008![]()
We have just supplied 10 Sam Bison American Pool tables to a large leisure company in the UK. As is always the case this has necessitated deliveries in London , the Midlands and the North West of England. We are able to supply a variety of used American Pool Tables in significant numbers if required. As part of this deal we have had to move some equipment for the customer as well and this meant that we needed to stay in or around Manchester.
We always prefer to avoid towns if possible and we are delighted to report we have found another gem of a small business for you. I should add that one of our competitors is so enthused about our accomodation reports that he logs in especially - (don’t you Peter !). If you want to stay in the Cheshire moorlands try the wonderful Harrop Fold Farm www.harropfoldfarm.co.uk near Macclesfield. This business has won loads of awards such as Cheshire B&B of the year 2006 , Cheshire Tourism Experience of the Year 2007 , English North West Tourism Highly Commended 2007 ,Trinity Mirror Annual Award 2008. etc etc. Do you pay £75 as per your average Travel Inn - No. At £50 per head it was outstanding both in terms of the accomodation on offer and the location. Mind you we did sew up the nick on their Pool Table which had seen better days. here’s hoping we get the job of renewing it at some stage !
In the evening we visited a local Pub which we found out was a Punch Taverns outlet. We had an interesting conversation about the amount of money the Lessee paid Sceptre Leisure (previously Crown Leisure) for their Pool Table which was a badly maintained 6 x 3 Mayfair which had clearly had a very hard life. I was absolutely staggered by the rental and the fact that the landlady claimed that she also had to pay a proportion of the take to the machine company. Whether this was true or not I cannot confirm.
One thing for absolutely certain is that Tenant’s and Lessee’s are currently having a very difficult time due to the economic climate and the effects of the smoking ban. However one of the greatest rip off’s the publican’s have had to endure is the effect of a tie on machine supply. The Pub Co’s have dressed this up by suggesting that the Machine Manager’s are able to provide in depth knowledge leading to better machine management and thus improved revenues. In truth there is no in depth knowledge required for a Pub Pool Table. It is all about Price , Condition and Service , the benefit has been gained by the Pub co who get a significant kick back from the supplier to be a nominated supplier - none of that benefit is ever given to the long suffering Tenant or Lessee. The Lessee have their hands tied as their only choice is to have the pool table removed from the premises. How on earth can a Pub company justify this situation as being in the best interest of the Tenant/Lessee. We could have sold a mint condition slightly used table for 80% of their total rental and they could have kept all the cash.
Anyday now there will be an announcement from Inspired Gaming Group (Leisurelink) stating that they are pulling out of the Pub machine supply business altogether. They regard this business as being unprofitable. This will further reduce the competition in this market as it is more than likely that one of either Gamestec or Sceptre will no doubt secure this business. This will further reduce the options available to Licencee’s when choosing supplier’s. The truth is that in many cases the quality of supply from these large companies is very poor and they would be dropped like a stone if proper competition was allowed.
The government are in the process of reviewing via an enquiry by the “Business and Enterprise Committee” the effect of the Beer tie on Tenanted and Leased Pubs. I suggest they look carefully at the machine tie which has resulted in a significant reduction in revenues to all Licensee’s over a number of years. The reason being that a large amount of the revenue has to be split with the property owner or Pubco. There was a time when the machine revenue was a real bonus to the Landlord. The benefit of this income stream has been entirely diluted. Can you imagine if the Pubco tried to cream off some income from catering and the furore it would create. The truth is that machine income is no different and yet has been treated entirely differently. You have to ask the question as to why it has ever been tolerated or allowed to occur !
If the “Business and Enterprise Committee” want to do something worthwhile then I suggest they look at this area in great detail. Going forward , an increase in the choices of supplier for equipment and the ability to retain all the income in their outlets might just keep some of these pubs open.