New pub code to give young landlords a taste of success
Industry leaders claim shake-up will encourage entrepreneurship
A LANDMARK deal to shake up how sections of the pub sector are run will create a new generation of young entrepreneurs, industry leaders claim.
With 24,000 under-25s already employed by pubs, it is hoped the new code will allow more to branch out on their own as landlords.
The new statutory code governing the trade is being introduced in England and Wales, with a Scottish equivalent being rolled out in the coming weeks. The move will give added protection on issues such as rent and beer costs to tenants who take over the running of premises owned by major brewing businesses and pub chains, including Belhaven/Greene King, Punch Taverns and Heineken.
The Scottish Beer and Pub Association (SPBA) said the code for so-called “tied pubs” would protect investment and ensure publicans “continue to give the nation’s young people unrivalled opportunities into business ownership”.
SBPA chief executive Brigid Simmonds said: “This is fundamentally a good thing for Scotland’s pubs, our economy and most importantly, our young people.
“The tied pub model gives Scotland’s young people the opportunity to start and run their own business, in a fun, exciting and hugely rewarding sector – an opportunity which just doesn’t exist in other industries.
“Already, over 24,000 people under-25 are employed in the beer and pub industry, with many of them choosing to run their own pub through the tied model.
“The nature of the relationship with the pub company also means that these young entrepreneurs have access to a range of benefits, as well as the safety net of being able to rely on the support and guidance of seasoned professionals.”
Scotland has lost more than 1,000 pubs and bars in the past 10 years, with the smoking ban and cuts to the drink-drive limit being largely to blame.
But at the same time the country has witnessed a craft beer and cask ale boom, as well as the rise of the gastro-pub.
So-called “tied pubs”, of which there are about 700 in Scotland, are required to buy supplies, often at high prices, from the companies owning the pubs.
The new law was introduced south of the Border after half of publicans tied to large pub firms said they earned less than the minimum wage.
The code has not been made law in Scotland, however, where the pub trade is markedly different from south of the Border, where a large percentage of licensees operate a Rovers Return-style bar with living quarters above.
But the Scottish code will mirror the equivalent code in England and Wales. Prominent figures from the drinks industry, including Scottish Licensed Trade Association chief Paul Waterson, will sit on a panel to ensure the new code operates as billed.
Ms Simmonds said: “This code helps ensure the pub industry continues to lead the way in creating the next generation of Scottish entrepreneurs.
“The code also gives publicans using the tied model to run their business, protections and rights.”