Hall & Woodhouse, the Dorset-based brewer and pub operator, has reported a 98% retention rate for licensees making it past their first year.
According to Business Link, the average number of UK businesses that fail in their first year is 20%. A total of 40% of Hall & Woodhouse licensees have been in the same public house for over three years – the standard timescale of their business partnership contract.
A bonus of the contract is that it allows licensees to renew with no rent review.
Matt Kearsey from Hall & Woodhouse, said: “We are delighted to have seen this level of retention in year one and also going forward. We introduced our Business Partnerships Agreement in 2010 to offer (licensees) support aimed at building their profits. I believe we have succeeded in making running a pub a desirable career/life style choice.
“We took the decision to remove the rent review to make it absolutely clear that we are committed to sustaining not penalising our Business Partner’s success so that they can operate public houses in which we can all take pride.”
