Scottish & Newcastle Pub Company (S&NPC), the Heineken-owned leased pub operator, has said its lessees could see a 15-20% uplift in machine income due to a “ground breaking” new machine strategy. S&NPC has reduced the number of suppliers it uses from 31 to 10 and said that in the process negotiated better terms for lessees. The company said it is also working direct with manufacturers to improve game development and is funding machine management technology. In the future, S&NPC said it would have an input in all aspects of machine management from game development and specifying where new machines should be trialled to monitoring operator performance. The company promised not to charge lessees royalties or an administration fee for its management services. Meanwhile, the firm said it would finance the development and introduction of technology into its machines that will highlight which games are played where, when and how often. This will enable operators to know when to refill hoppers, identify faults and address any security issues, S&NPC said. It will also monitor operators to ensure machines are changed regularly, or as soon as sales start to drop off, that problems are rectified promptly. Chris Moore, S&NPC trading director, said: “Successful machine management is a complex, specialist area which neither your average BDM or lessee will have the knowledge to undertake. We feel so strongly about the added value that it provides that we are funding this element. “Our research has shown that many lessees are not aware of the revenue the machines in their pubs generate or their potential. S&NPC lessees on average earn £4,000 a year from AWPs. We believe a further £800 income could be delivered through maximising machine performance. “Our new deal for machines is fundamentally different to others in the leased pub sector. There are no hidden charges, royalty fees or admin fees. We don’t charge for our management services, we share the revenue. Neither do we just source cheap machines, we look for sustained long term value for our lessees. Our machine management team is working with game developers, manufacturers and operators and using consumer insight to identify where the industry is heading and driving change. “Many pub operators and suppliers seem to be happy just managing the decline of machines, but we believe that there is a real opportunity to grow turnover through innovations that attract younger pub go-ers who are very much a ‘gaming generation’.”