As a landlord of more than 500 tied pubs, Star Pubs & Bars are covered by the regulations laid out in the Pubs Code etc. Regulations 2016 which came into force on the 21st July 2016. The code is designed to protect the rights of tied tenants in England and Wales and is overseen by the Pubs Code Adjudicator (PCA).
The Pubs Code is based on the core principles of fair and lawful dealing between the Pub Company and licensee and that a tied tenant should be no worse off than a free of tie tenant. The PCA’s role is to oversee the operation of the Pubs Code, arbitrate disputes and investigate alleged breaches.
A copy of the regulations can be found here.
Further information on the role and responsibilities of the Pubs Code Adjudicator can be found on the PCA’s website here.
The Pubs Code Adjudicator office can be contacted in the following ways:
- Complete an online enquiry form
- Email: firstname.lastname@example.org
- Call 0800 528 8080 to request a call back
- Send post to: Office of the Pubs Code Adjudicator, 4th Floor, 23 Stephenson Street, Birmingham, B2 4BJ, United Kingdom
- To keep up to date with PCA news: Sign up to website email alerts or follow the PCA on Twitter, Facebook and LinkedIn @pubscodepca
We would always encourage our licensees and tenants to take independent, professional and qualified advice from accredited trade bodies in relation to their individual rights under this legislation. Guidance is also available on the BII website here.
Our Compliance Officer oversees our compliance with the Pubs Code and prepares an Annual Compliance Report which provides a detailed and accurate account of Star Pubs & Bars’ compliance with the code. Our report which covers the year ending 31st March 2021 can be found here.
Market Rent Only
The Pubs Code sets out the circumstances (MRO trigger events) under which a tied tenant is entitled to request a Market Rent Only (MRO) assessment - allowing lessees and tenants to consider whether to elect for an MRO compliant agreement. Further information on MRO trigger events are set out in Part 5 of the Pubs Code. In addition there is useful information on the PCA's website. A Q&A on Star Pubs & Bars’ approach to MRO is available here.
Scotland Code of Practice
Tied tenants in Scotland are covered by a voluntary Code of Practice which governs the relationship between pub businesses and their tenants. A copy of this code can be found here. In the event of a dispute with Star Pubs & Bars which cannot be resolved through our complaints procedure the code allows tenants to refer disputes to either the Pubs Independent Rent Review Scheme (PIRRS) or to the Pubs Independent Conciliation & Arbitration Service (PICA-Service). Contact details for these bodies are www.pirrscheme.com and www.picaservice.com.
Working with Star
We pride ourselves on developing strong and lasting partnerships with our licensees, built on trust and respect. Even before the introduction of the Pubs Code, we strived to work to the self-regulatory Industry Framework Code which was underpinned by the values and processes of our own code of practice.
Our current code of practice - Working with Star - is based upon the principles of the Pubs Code and sets out our own internal processes which we consider to be best practice. This guide outlines how we work together with you at key points during your application and lease. It aims to give everyone a jargon-free understanding of how we work with our lessees and tenants and sets out our best practice standards. The guide also includes the below information:
- Tied Rent Assessments and Rent Reviews - how rents are set and what to expect when it comes to rent reviews.
- Flow Monitoring - the role of flow monitoring in your pub, why it’s there and the procedures followed should any discrepancies arise.
- Schedule of Repair Responsibilities - detail on what our mutual responsibilities are on repairing and maintaining a property.
Insurance Responsibilities - this guide is to provide you with information regarding Star Pubs & Bars’ Buildings Insurance Policy (including what is covered, Licensees’ costs, Licensees’ insurance responsibilities and the claims process).
Complaints and Grievances
At Star Pubs & Bars we are committed to meeting the obligations set out in Working with Star and the Industry Framework Code. We take any complaints seriously and have a structured and robust grievance procedure in place should any of our lessees or tenants feel that we have failed to meet our responsibilities under these Codes. Find out more about how to raise a grievance with Star Pubs & Bars.
Cask Beer - Sediment Allowances and Saleable Volume
Please be aware the yield (volume of beer purchased compared to the volume sold) for cask (handpull) beers can be affected by sediment that is the by-product of conditioning beer in the container. This sediment remains in the container after the beer is conditioned and is not therefore saleable to customers.
The sediment remaining in the container will vary by different cask brands, and has been recognised for many years by brewers and HMRC as a feature of the cask ale beer market. Therefore, each brewer negotiates by brand an allowance (a proportion of the volume in a cask container), on which beer duty is not paid to reflect the unsaleable nature of the sediment. When it comes to selling cask beer to your customers the same principal applies that some of the beer in the container is unsaleable.
To assist you in calculating projected beer sales, margins and yields, our price list contains details of the volume on which duty has been paid by the brewers making the cask beer. These are the most up to date details that have been provided to us but please note that these sediment allowances can change from time to time. A copy of the current Star price list can be found here.
When calculating rent, profit & loss Star Pubs & Bars factor cask sediment allowances in to the profitability of the pub by measuring the impact on expected sales and profitability through a wastage allowance. When presented with a rent calculation this should be read in conjunction with the waste calculation document.
Should you require further information please ask your Business Development Manager.