Inside Track by Peter Martin
Who in their right-mind really wants another official investigation in the pub industry? But here we have Camra considering making a fast-track “super complaint” to the Office of Fair Trading about the beer tie. Worse, the consumer group is being encouraged in this thinking, we hear, by MP John Grogan. There may even be some operators who think that inviting the Government or its agencies into the sector would somehow be a good idea. When has Government intervention ever bought really positive results? The Beer Orders? Licensing Reform? OK, the guest beer provision did work for many, but at what price overall? This is not to have a go at John Grogan, who is one of the “good guys” in Parliament, but he is after all a politician who does this sort of thing for a living. It is his bread-and-butter, but that doesn’t mean it is good for businesses. However, the fact that he sees an inquiry as a solution might suggest how bad things have been allowed to get. Inquiries, at the best of times, are costly, time-consuming and distracting – and these aren’t the best of times. They can also be extremely divisive, and currently most people seem to think the industry needs more unity not less. Interacting with anyone who isn’t a customer, an employee, a supplier, a banker, a landlord or a shareholder would also seem a luxury in present circumstances. Dealing with Government and Parliament can be seductive, but the record of the pub market, or any part of the hospitality industry, really influencing change for the better is not great. The sobering truth, however, is that issues around the landlord/lessee relationship, and consequently the tie, have been allowed to develop into a major and growing problem for the sector. But it is the industry itself that should be resolving it. If they have any sense, the big pubcos should be in dialogue with operators across the board now to find new ways of doing business together. Forget, who said what, the model is damaged, if only because people believe it is, and needs repair or better still a redesign. If industry leaders can’t come together, then the Government will surely pour in its troops. Who will be in their right minds then?