Tag Archives: Micropub Association

Why the Micropub Association should be furious with Camra

The Micropub Association should be absolutely raging with the Campaign for Real Ale. Because under the misguided idea that it is “saving” the British pub, Camra is trying hard to make sure no new pubs ever get opened again.

Once again this is a case of not properly thinking through the implications of a proposed policy. What Camra wants to do is to try to make it much more difficult to close pubs (more on why that’s a stupid idea later). So why will making it more difficult to close pubs also make it much more difficult to open new pubs, in the way that the Micropub Association has been doing so successfully over the past few years, at a rate currently running at two a month (a better new pub opening record, afaik, than any pub company is currently achieving.)

The problem is that the restrictions Camra wants to put in the way of anyone trying to shut a pub means that landlords will be extremely reluctant to let their property be turned into a new pub. And similarly banks, building societies and other lenders will be deeply unwilling to give anyone a mortgage to buy a property they want to turn into a pub. Why? Because if the new pub business goes nipple-skywards after a year or three, the landlord now has a property that, under Camra’s proposed rules, needs planning permission to be turned back into something other than a pub. So instead of speedily being able to find another tenant, the landlord now has to go through the expensive and time-wasting procedure of getting the building “depubbed” again before it can once more become a coffee shop, an opticians or whatever. Similarly the potential mortgage lender is not going to want to risk having to repossess the building that housed a failed new pub business, and, again, having to find the staff, time and money to put in a planning application (do you know how long it takes to get a planning application through?) for change of use so they can then flog the place to a non-pub user. So – finance for people wanting to open new pubs is going to dry right up, because Camra has a dumb idea it thinks will help pubs stay open.

Indeed, the first move should anything like Camra’s “planning permission to close pubs” idea approach the statute books will be a rash of pub closures, as pub owners shut their marginal pubs before they have to seek local councillors’ permission to do so. But even if such a law did come in, does anyone seriously believe it would prevent a single pub from closing? Of course it wouldn’t. And trying to preserve failing pubs in aspic is a remarkably dumb idea anyway, because the ultimate effect is to damage successful pubs by depriving them of business they deserve.

The whole idea that pubs need special protection is nonsense, anyway, as I have frequently argued. Pubs are not sacred. The rights of pubgoers do not trump the rights of property owners. The disappearance of any pub is not the same as, eg, the disappearance of a Saxon church. Pubs are, and have always been, “churned” all the time: one closes, another one opens. (It may surprise you to learn that JD Wetherspoon has closed more than 100 of the pubs it has opened over the years). If a pub is making less money for its owner than it would under another use, the owner must have the right to maximise their income. If a pub closes, and a community feels it needs a pub, let someone open a new pub, in a more viable site with fewer overheads. Except that if Camra has its way, opening that new pub will be much more difficult.

Camra can’t even get its own arguments straight. It complains about pubs being turned into shops and then declares that “69% of all adults believe that a well-run community pub is as important to community life as a post office, local shop or community centre.” So – shops are important, too! Indeed, the reason why so many pubs are being turned into shops is because to many communities, local shops are MORE important than pubs, in the sense that more people use their local shop and spend more money in it, than use their local pub. I would guarantee you that any pub turned into a Tesco now has a wider selection of the community crossing its threshold, more frequently, than ever happened when it was the Duck and Dive, or whatever. Most pubs have a remarkably low number of real regulars, and the importance to the community that Camra ascribes to them in the 21st century is a product of sepia-tinted nostalgia for the times before the last old maid bicycled to Holy Communion through the mists of the autumn morning (G. Orwell).

If there is one single thing that would increase the chance of survival of the British pub – and I won’t yield to you, Camra or anyone in my desire to see our pubs strong and thriving – it would be a dramatic improvement in the standard of cask beer served in those pubs. Cask beer is (or should be) the unique selling point of our pubs, and Camra would do a far better job thinking up ways to improve the quality of our pints than inventing stupid tweaks to planning laws that won’t work, and will actually have a seriously detrimental effect on the efforts of people like the Micropubs Association trying to open pubs of just the sort Camra members approve.

Micropubs: revolution in the making or just five grumpy old men in a 10ft square space?

The micropub movement – numbers now past 40 and rising, with new examples seemingly opening every week – seems to have avoided any sort of critical backlash so far, probably because it’s still very, very tiny (like the pubs themselves). But I fear it won’t be long before a definition of “micropub” appears based on a TripAdvisor review of the “original” micropub, the Butcher’s Arms in Herne, Kent: “Five grumpy old men in a 10ft square space”.

The Old Cock, Fleet Street, London
The Old Cock, Fleet Street, London

I say this as a card-carrying member of the Grumpy Old Man demographic myself, but that is the surprising aspect of the micropub “mini-boom” – it turns on its head every recently received wisdom about the way forward for the British pub, about how the wet-led boozer catering for old gits who are only interested in pints and chat is on its Last Orders, about how those pubs which fail to gastro-reinvent themselves are doomed to end up as supermarkets or blocks of flats.

The facts are, sadly, there to show that, across the board, places that stick to “LADs” – long alcoholic drinks – as their main attraction are putting up the shutters. It’s not just pubs: between December 2012 and December 2013, the number of social clubs in Britain fell by 417, or 3.1 per cent, a closure rate of eight a week (and with no help or hindrance from the pubcos, you’ll notice: you do NOT have to be a pubco tenants to find the current climate extremely chilly. ). But pubs are suffering, of course: over the same period, “wet-led” or drinkers’ pubs fell by almost 600, or 2 per cent, a rate of just over 11 a week. Many of those were town centre pubs, which are particularly feeling pain. Food-led pubs, meanwhile, nudged up slightly, from 11,334 to 11,357, while restaurants shot ahead, with a net gain for the year of 1,470 outlets. In other words, for every wet-led pub that closes, two and a half new restaurants open. That trend looks set to accelerate: between now and 2018 it has been predicted that the number of “wet-led” pubs will fall by 10 per cent, or about 2,900 boozers, while food-led pubs will increase in numbers by 7 per cent and restaurants by 5 per cent. (All figures from CGA Peach.)

Now, all the micropubs in Britain added together right now still don’t beat one month’s “wet-led” pub closures. But since a micropub – food-free, no keg offering, the sort of beer-only alehouse that was already disappearing before the Second World War, typically filled with unaccompanied men over 50, often in or near town centres – is a reversal of everything else happening in the pub market right now, we may eventually have to ask: “Is this just a few hobbyists, or have the big pub operators actually missed a trick?”

Indeed, the micropub movement looks to have produced its first home-grown entrepreneur, with James Mansfield, owner of the Medieval Beers brewery in Colston Bassett, Nottinghamshire, opening a third micropub under the name “Beer Shack”, in the town that shares his name, to follow the first two Beer Shacks in Hucknall and Burnley respectively.

Could this be the sign that micropubs are moving from what could, even a few months ago, be dismissed as an eccentric hobby into the mainstream of British hospitality? There are, apparently, so many people now looking to open a micropub themselves that the Micropub Association has declared that “the micropub revolution is going bonkers”, and put a warning on its website that “due to the sheer numbers of enquiries we get from potential micropub owners, we are unable to give you any individual advice [or] enter into individual email discussions regarding the viability of the setting up of your micropub.”

The Association has just restated its definition of what a micropub is, moving from a declaration that it had to be small, in size, a conversion of an existing premises, primarily selling real ale, with “NO lager whatsoever”, and filled with “lively banter and chat with no music”. Today the Association says that “a micropub is a small freehouse which listens to its customers, mainly serves cask ales, promotes conversation, shuns all forms of electronic entertainment and dabbles in traditional pub snacks.”

Is the micropub as a route to running your own pub business a threat to the traditional pubco tenancy? As the Micropub Association’s website points out, the would-be micropub landlord has a fair number of advantages over those looking to start up a “traditional” pub. The small size of a micropub means low costs and maximum use of space; no music means no costly music licences and no expensive sound system to pay for; no food means less work, fewer skills required, less space needed, no hygiene exams to pass, no additional costs because of the potentially expensive oversight by environmental health officials, and no “scores on the doors” rigmarole to deal with; no keg lagers or other keg beers means no complicated equipment and no need for bar space; the potential for low rates due to being rated as a shop rather than a pub; from that, low water rates, which are traditionally based on the rateable value; and if you keep turnover below £75,000 a year, the chance to save on 20% VAT. What’s not to like?

We won’t, I don’t think, be able to tell if the micropub movement really is a revolution or a fad until micropub numbers get into at least low triple figures, and we don’t see a rash of closures. But the fact that the movement has gone from a very slow start – the Butcher’s Arms opened in 2005, there were no more micropubs until 2009 and still only a dozen by the end of 2012 – to what looks like a (still small) rocket surge suggests that something extremely interesting may be happening.

How will it affect the rest of the pub business if micropubs really do become mainstream? Well, it could certainly cut back on the number of people looking to run a pubco tenanted pub, if they think they can start up a micropub all of their own for, probably, less money than acquiring a tenancy would cost. But a pub that takes in a year what the average JD Wetherspoon outlet takes in a fortnight is probably not going to worry too many big operators. And the big operators – and most other pubs – probably won’t be losing much business to the micropubs anyway, since the customers micropubs seem to be attracting look to be those who stopped going out to “ordinary” pubs 20 years ago, and stayed at home instead.

On the other hand, since the micropubs seem to be proving that there is a demographic out there which is not currently being served properly by the “mainstream” pub industry, and since new business is always welcome, it may be that big operators start to consider the advantages of running micropubs themselves. In just the way that Tesco, having captured the “big destination shop” supermarket sector, moved into town centres with smaller Tesco Metro stores to mop up what remained, could we see someone like Wetherspoon, having captured so many high streets, decide to move into the suburbs with a chain of “Spoons Local” micropubs?

(A variation of this article appeared on the Propel Info site)