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Publication - Impact assessment

Scottish Pubs Code and related regulations: business and regulatory impact assessment

Published
2 May 2024
Directorate
Agriculture and Rural Economy Directorate
Topic
Business, industry and innovation
ISBN
9781836012429

The business and regulatory impact assessment of the Scottish Pubs Code Regulations 2024. It also covers the Tied Pubs (Scotland) Act 2021 (Fees and Financial Penalties) Regulations 2024 and the Tied Pubs (Scottish Arbitration Rules) Amendment Order 2024.

View supporting documents Supporting documents

Annex E

Scottish Licensed Trade Association survey

This survey with tied pub tenants was run by the Scottish Licensed Trade Association during June 2023. The Scottish Licensed Trade Association represents all sectors of the licensed trade in Scotland. This survey is not a Scottish Government survey but is referenced in this BRIA and it has therefore been published as an Annex.

Q1: What type of premises do you operate?
Graph showing responses to the survey question 1: What type of premises do you operate? The data is in the table below.
Answer choices % Responses Number of Responses
Pub 83.87% 26
Nightclub/venue 6.45% 2
Restaurant 0.00% 0
Hotel 9.68% 3
Other (please specify) 0.00% 0
Total 100% 31
Q2: Are you tied to buy drinks from your commercial landlord, ie. Who you rent the building from?
Graph showing responses to the survey question 2: Are you tied to buy drinks from your commercial landlord i.e. Who you rent your building from? The data is in the table below.
Answer choices % Responses Number of Responses
Yes, I am a tied premises 96.77% 30
No, I am a free of tie premises 3.23% 1
Total 100% 31
Q4: How long was the term on your current lease for?
Graph showing responses to the survey question 4: How long was the term on your current lease for? The data is in the table below.
Answer choices % Responses Number of Responses
I am a new tenant currently on a temporary agreement (TAW/TMA) 3.23% 1
I am on a TAW/TMA or tacit relocation as my previous lease expired and the pubco have not renewed it 19.35% 6
I am still on a substantive lease that was for a term of 1-3 years from when it started 9.68% 3
I am still on a substantive lease that was on a term of 5 years from when it started 41.94% 13
I am still on a substantive lease that was on a term of 10 years when it started 19.35% 6
I am still on a substantive lease that was on a term of more than 10 years when it started 6.45% 2
Total 100% 31
Q5: How long is left on your substantive lease?
Graph showing responses to the survey question 5: How long is left on your substantive lease? The data is in the table below.
Answer choices % Responses Number of Responses
My substantive lease expired recently and the pubco refused to renew, I am on a temporary agreement (TAW, TMA, etc) to tacit relocation 19.35% 6
1 year or less 29.03% 9
2 years 16.13% 5
3 years 9.68% 3
4 years 9.68% 3
5 years 0.00% 0
Over 5 years 12.90% 4
I have never been on a substantive (long term) lease as I am new to the pub 3.23% 1
Total 100% 31
Q6: How many employees do you have?
Graph showing responses to the survey question 6: How many employees do you have? The data is in the table below.
Answer choices % Responses Number of Responses
10 or less 58.06% 18
11-23 29.03% 9
26-49 6.45% 2
50 or more 6.45% 2
Total 100% 31
Q7: What is your current net take home pay (after tax)?
Graph showing responses to the survey question 7: What is your current net take home pay (after tax)? The data is in the table below.
Answer choices % Responses Number of Responses
Less than £10,000 32.26% 10
£10,000-£14,999 25.81% 8
£15,000-£19,999 12.90% 4
£20,000-£24,999 9.68% 3
£25,000-£29,999 0.00% 0
£30,000-£34,999 6.45% 2
£35,000-£39,999 6.45% 2
£40,000 or more 6.45% 2
Total 100% 31
Q8: How many hours a week do you work for your business?
Graph showing responses to the survey question 8: How many hours a week do you work for your business? The data is in the table below.
Answer choices % Responses Number of Responses
40 or less 16.13% 5
41-50 22.58% 7
51-60 25.81% 8
61-70 6.45% 2
71-80 16.13% 5
81-90 9.68% 3
91-100 3.23% 1
Over 100 0.00% 0
Total 100% 31
Q9: Do you earn more or less than the Minimum Wage per hour worked?
Graph showing responses to the survey question 9: Do you earn more or less than the Minimum Wage per hour worked? The data is in the table below.
Answer choices % Responses Number of Responses
I earn significantly less than minimum wage per hour worked 67.74% 21
I earn less than minimum wage per hour worked 12.90% 4
I earn around minimum wage but less than the real living wage per hour worked 9.68% 3
I earn more than the real living wage per hour worked 9.68% 3
Total 100% 31
Q10 Has your landlord signed up to the voluntary code of practice for tied pubs?
Graph showing responses to the survey question 10: Has your landlord signed up to the voluntary code of practice for tied pubs? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 51.61% 16
No 6.45% 2
Don’t know 41.94% 13
Total 100% 31
Q11 How much profit does your business make?
Graph showing responses to the survey question 11: How much profit does your business make? The data is in the table below.
Answer choices % Responses Number of Responses
Zero or loses money 29.03% 9
Under £10,000 29.03% 9
£10,000-£19,999 19.35% 6
£20,000-£29,999 6.45% 2
£30,000-£49,999 9.68% 3
£50,000 or more 6.45% 2
Total 31
Q12 What is your gross profit (GP or margin) from wet sales?
Graph showing responses to the survey question 12: What is your gross profit (GP or margin) from wet sales? The data is in the table below.
Answer choices % Responses Number of Responses
Less than 40% 6.45% 2
41-45% 6.45% 2
46%-49% 9.68% 3
50-55% 35.48% 11
56-60% 22.58% 7
61%-65% 19.35% 6
66%-70% 0.00% 0
71-75% 0.00% 0
76% or higher 0.00% 0
Total 31
Q13 What is your gross profit (GP or margin) from dry sales?
Graph showing responses to the survey question 13: What is your gross profit (GP or margin) from dry sales? The data is in the table below.
Answer choices % Responses Number of Responses
Less than 20% 33.33% 10
20%-39% 6.67% 2
40-59% 23.33% 7
60-79% 36.67% 11
80% or more 0.00% 0
Total 100% 30
Q15 How much rent do you pay each year?
Graph showing responses to the survey question 15: How much rent do you pay each year? The data is in the table below.
Answer choices % Responses Number of Responses
Less than £10,000 0.00% 0
£10,000-£19,999 9.68% 3
£20,000-£29,999 19.35% 6
£30,000-£39,999 25.81% 8
£40,000-£49,999 16.13% 5
£50,000-£59,999 16.13% 5
£60,000-£69,999 6.45% 2
£70,000-£79,999 3.23% 1
£80,000-£89,999 0.00% 0
£90,000-£99,999 3.23% 1
£100,000 or more 0.00% 0
Total 31
Q16 Do you have a guest beer agreement currently?
Graph showing responses to the survey question 16: Do you have a guest beer agreement currently? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 29.03% 9
No 70.97% 22
Total 100% 31
Q17 Does your guest beer agreement restrict the guest beers you can sell (select all that apply)
Graph showing responses to the survey question 17: Does your guest beer agreement restrict the guest beers you can sell (select all that apply)? The data is in the table below.
Answer choices % Responses Number of Responses
Yes – restricts type of beer e.g. cask 25.81% 8
Yes – restricts the brands of beer or who I can buy from 0.00% 0
No – does not restrict beer choice 3.23% 1
N/A I don’t have a guest beer agreement 70.97% 22
Total 31
Q18 When you leased your pub, the pubco should have presented you with a rent valuation model. Since leasing your pub how accurate has this been?
Graph showing responses to the survey question 18: When you leased your pub, the pubco should have presented you with a rent valuation model. Since leasing your pub how accurate has this been? The data is in the table below.
Answer choices % Responses Number of Responses
The rent value model was accurate, I make about as much or more profit as it suggested 3.33% 1
The rent value model was NOT accurate, I make less profit than it suggested 96.67% 29
Total 100% 30
Q19 Do you have a gaming machine tie as part of your lease?
Graph showing responses to the survey question 19: Do you have a gaming machine tie as part of your lease? The data is in the table below.
Answer choices % Responses Number of Responses
Yes I am tied for gaming machines 67.74% 21
No – I am free of tie on gaming machines and can source from anywhere 9.68% 3
I don’t have any gaming machines/or gaming machine ties 22.58% 7
Total 100% 31
Q20 If you are tied on gaming machines, would being free of tie benefit you?
Graph showing responses to the survey question 20: If you are tied on gaming machines would being free of tie benefit you? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 76.67% 23
No 3.33% 1
Don’t know 20.00% 6
Total 100% 30
Q21 Did your pub-owning business provide enough information for you to accurately construct a business plan and enter into a lease?
Graph showing responses to the survey question 21: Did your pub-owning business provide enough information for you to accurately construct a business plan and enter into a lease? The data is in the table below.
Answer choices % Responses Number of Responses
Yes, both their projected costs and turnover were accurate 6.45% 2
No, the costs are much higher 35.45% 11
No, the turnover was over-estimated 6.45% 2
No – the turnover was over-estimated and costs are much higher too 51.61% 16
Total 100% 31
Q22 Are you likely to request a guest beer agreement through the code?
Graph showing responses to the survey question 22: Are you likely to request a guest beer agreement through the code? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 64.52% 20
No 9.68% 3
Don’t know 25.81% 8
Total 31
Q23 If you were able to request a guest beer agreement for any type of beer - which type of beer would genuinely help you?
Graph showing responses to the survey question 23: If you were able to request a guest beer agreement for any type of beer - which type of beer would genuinely help you? The data is in the table below.
Answer choices % Responses Number of Responses
A standard mainstream beer (ie. Tennents) to try and maximise GP and assist my business financially 58.06% 18
A local or craft beer to try and support local breweries and bring in new customers for something different 16.13% 5
Both/either – it should be my choice and not restricted by the code 25.81% 8
Total 100% 31
Q24 How does your tied pub rent compare to free of tie pubs in your local area
Graph showing responses to the survey question 24: How does your tied pub rent compare to free of tie pubs in your local area? The data is in the table below.
Answer choices % Responses Number of Responses
My rent is about the same as comparable free of tie pubs 25.81% 8
My rent is higher than comparable free of tie pubs 70.97% 22
My rent is lower than comparable free of tie pubs 3.23% 1
Total 100% 31
Q25 An MRO lease is a Free of Tie lease where the rent is set at an amount agreed by the tenant and the landlord, or failing agreement between them, at the open market rate for the property. It does not include any product or service ties, complies with any requirements of the code and contains no unreasonable terms
Graph showing responses to the survey question 25: An MRO lease is a Free of Tie lease where the rent is set at an amount agreed by the tenant and the landlord, or failing agreement between them, at the open market rate for the property. It does not include any product or service ties, complies with any requirements of the code and contains no unreasonable terms? The data is in the table below.
Answer choices % Responses Number of Responses
I would be interested in a free of tie MRO lease 90.32% 28
I would not be interested in a free of tie MRO lease 0.00% 0
Don’t know 9.68% 3
Total 100% 31
Q26 Are you likely to request a free of tie MRO lease, where the rent is an open market rent for a comparable free of tie pub?
Graph showing responses to the survey question 26: Are you likely to request a free of tie MRO lease, where the rent is an open market rent for a comparable free of tie pub? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 80.65% 25
No 6.45% 2
Don’t know 12.90% 4
Total 100% 31
Q27 In what year will your lease/tenancy agreement be up for renewal?
Graph showing responses to the survey question 27: In what year will your lease/tenancy agreement be up for renewal? The data is in the table below.

Please note the data table is overleaf.

Answer choices % Responses Number of Responses
My substantive lease has now expired, and I am on temporary agreements or tacit relocation 19.35% 6
I have recently renewed my lease however the pubco can give 6 months or less notice at any time (no security) 12.90% 4
I have a substantive lease that has less than 1 year remaining 22.58% 7
I have a substantive lease that has less than 2 years remaining 9.68% 3
I have a substantive lease that has less than 5 years remaining 22.58% 7
I have a substantive lease that has more than 5 years remaining 12.90% 4
Total 100% 31
Q28 What impact might a Free of Tie MRO lease have on your gross profit/margin from wet sales
Graph showing responses to the survey question 28: What impact might a Free of Tie MRO lease have on your gross profit/margin from wet sales? The data is in the table below.
Answer choices % Responses Number of Responses
No impact or decrease 3.23% 1
Increase by 0-0.9% 3.23% 1
Increase by 1- 4.9% 6.45% 2
Increase by 5 – 9.9% 19.35% 6
Increase by more than 10% 67.74% 21
Total 100% 31
Q29 If the code created a right to request a rent review would you use this? This would be on top of any arrangements set out in your lease?
Graph showing responses to the survey question 29: If the code created a right to request a rent review would you use this? This would be on top of any arrangements set out in your lease? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 77.42% 24
No 6.45% 2
Don’t know 16.13% 5
Total 100% 31
Q30 Has your Pubco ever sent out any letters, emails or had any conversations with you in person suggesting or hinting that your future in the pub may be at risk as a result of the Tied Pubs Scotland Act (the Bibby Bill)?
Graph showing responses to the survey question 30: Has your Pubco ever set out any letters, emails or had any conversations with you in person suggesting or hinting that your future in the pub may be at risk as a result of the Tied Pubs Scotland Act (the Bibby Bill)? The data is in the table below.
Answer choices % Responses Number of Responses
Yes 54.84% 17
No 45.16% 14
Total 100% 31
Q31 As a result of being in a tied lease, are you financially:
Graph showing responses to the survey question 31 As a result of being in a tied lease, are you financially, worse off than a free of tie pub or better off than a free of tie pub? The data is in the table below.
Answer choices % Responses Number of Responses
Worse off than a free of tie pub? 100% 30
Better off than a free of tie pub? 0 0
Total 100% 30

Contact

Email: tiedpubs@gov.scot

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