Research on the pub sector in Scotland phase 1: scoping study

Annex 6: Pub Co Case Study template

Introduction:

Thank you for agreeing to participate in this CGA research study. Further to our original discussion we would like to ask you a selection of key questions to help us with our independent research on the operation of the pub sector in Scotland from your business perspective.

RECORD: [ompany Name] / [Name/ Position]

CGA Strategy Limited has been commissioned by the Scottish Government to undertake independent research on the operation of the pub sector in Scotland. Because of the sensitive nature of the data collected, CGA would like to offer you reassurance that all data collected will be handled securely and confidentially. It will not be possible for the answers you provide to be linked directly back to your business and the details will be collated alongside all other responses.

Q1. Can you provide a breakdown of your current Scottish pub business estate operations (as a total number of outlets in the following: Tied/ Free of Tie Leased/ Tenanted and Managed)?

	Last Year	This Year
i) Tied Leased/ Tenanted
ii) Free of Tie Leased/ Tenanted
iii) Managed (Temporary)
iv) Managed (Permanent)

Q2. Do you intend to retain or change this business model going forward? If so, why?

Q3. What do you see as the particular advantages and disadvantages of the 3 business types set out below in the three identified areas?

Leased / Tenanted - Partial And Fully Tied
Costs/ Profitability
Efficiency
Partnerships/ Relationships

Leased / Tenanted - Free Of Tie
Costs/ Profitability
Efficiency
Partnerships/ Relationships

Managed
Costs/ Profitability
Efficiency
Partnerships/ Relationships

Q4. Are you happy with the structure of your current pub portfolio? If not, why?

Pub Agreements
Q5. Over what length of time are your average current lease agreements?

Q6. Are there any specific criteria potential licensees have to fulfil for them to be taken into consideration?

Q7. Do you provide the option for individuals to obtain independent financial or legal advice?

Q8. Do you provide the option to choose from different contract types?

Q9. What type of options are available/ are most popular?

Q10. Do you have, or offer, independent contractual dispute resolution?

Q11. Do you offer any flexibility regarding amendments, or renegotiations to current contracts?

Q12. Which products and services does your Pub Co provide on a tied basis? - Mark each that apply with a "Y"

	Managed	Tenanted Tied	Tenanted Partial Tie	Free of Tie
Beer
Cider
Spirits
Wines
Soft Drinks
Machines

Q13. Please provide examples for the last 2 financial years available
Product cost and selling price lists for these shown below with a ""Y"" that relate to products and services within the categories identified by you in Question 12.

Q14. Please provide schedules separately to this questionnaire for each pub business model you are operating.

	Managed	Tenanted Tied	Tenanted Partial Tie	Free of Tie
Beer
Cider
Spirits
Wines
Soft Drinks
Machines

Q15. How often are your cost and wholesale beer and wine / spirits prices changed / reviewed?

Q16. How much have your cost and wholesale beer and wine / spirits prices changed in the last 3 years?

Q17. What are the key reasons given by your licensees for choosing a pub with your company?
Low cost entry into the industry
For the business support offered
Number of pubs available
Wanted to run a pub from your portfolio specifically
Other (please specify)

Q18. What is the average licensee monthly rent?
For this year and last year

Q19. Do any of your pubs come with personal accommodation?
If so, what is the estimated percentage of your total properties which offer accommodation?
If so, what estimated financial value (relative to equivalent local housing rents) would you put on the benefit offered to the licensee?

Q20. Do you offer a detailed breakdown of the rent calculation to the leaseholder?

Q21. Do you include an RPI (Retail Price Index) rent review clause in your standard contracts?

If you don't include an RPI rent review clause how often are rents reviewed?

Q22. How much (approximately) have your standard rents risen or fallen in the last 3 years

Q23. What is the average estimated total annual £ turnover (ex VAT) of each pub business type detailed below?
i) Tied Leased/ Tenanted
ii) Free of Tie Leased/ Tenanted
iii) Managed

Q24. Can you please outline:
What you consider to be the average value of the following SCORFA benefits (where applicable) provided to your licensees
And
How much do you think they are worth annually as a percentage of overall turnover of an average individual business?

	Average Annual Value	Total Value as a % of total turnover
Business Help
Legal & Compliance
Property
Memberships & Subscriptions
Marketing & PR
Products and Product Support
Consultancy/ Business Services
Training
Other (please specify)

Q25. In an overall view do you think your licensees are happy/ unhappy with their current agreement?
Please provide additional comment to your previous response

Q26. Do you feel that the current Scottish regulatory situation is satisfactory/ unsatisfactory?
Please provide additional comment to your previous response

Q27. Do you have any other comments/ statements to make regarding the Scottish pub sector?