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Enterprise chief bites back in Wetherspoons argument
22 Jan 2009
A bar-room brawl erupted between two of Britain's biggest pub groups today as Ted Tuppen, chief executive of Britain's second-biggest pubs group Enterprise Inns, said: “I don't take Wetherspoons terribly seriously.”
Tuppen was responding to JD Wetherspoon founder Tim Martin, who yesterday described Enterprise and Punch Taverns, his two biggest rivals, as “finished”, and said Enterprise's prices were too high.
Enterprise today posted an 8% fall in income per pub, 6% drop in like-for-like beer sales and 7% rental revenue decline. Wetherspoon, meanwhile, reported a good Christmas with like-for-likes up 3.7%.
But Tuppen said his figures were “a good result for the current climate”, and the rate of decline was “in line with expectations”.
While Enterprise said it expected the coming months to be “very challenging”, it claimed its balance sheet remained “robust” and it would be helping pubs to increase revenue in the coming year.
“There are so many other reasons for going to the pub than price. Quality, sense of community, and service are far more important for our pubgoers,” said Tuppen. “We'll be spending £45 million helping licensees to develop new business. But we don't compete with Wetherspoons in many locations — and anyway, we think that if people want cheap beer and nothing else, they'll go to the supermarket.”
Reader views (2)
Hi, I have been a licensee for 28yrs (just retired)The pub problem has been around for years in the form of high rents and no discount approach, if only these pig headed board room bosses would have listened to the "professional Licensees" they may not be in the mess they are now, the credit crunch has merely stopped unsuspecting green horns from re morgageing,and the gravy train has now all but dried up. lower the rents, free up the tie, and they JUST might survive
- Ray Nottingham, Nottingham, 04/05/2009 10:48
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Both companies are in a mess and are attacking each other to distract attention from their own problems.
Wetherspoons have a massive loan to refinance this year and are cutting back everywhere as they know that this will cost them. Their 99p per pint offer is a loss making gimmick.
Enterprise Inns also have massive debts, which they are struggling to meet. Read the comments of their tenants in the trade websites and you will see where the problems lie. They used to have the fall back of the "bricks and mortar" valuation of their property portfolio, the fall in property prices has removed this.
- Andrew W1, London, 24/01/2009 00:16
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