Greene King seeking new landlord for beloved Hampstead Norreys pub
A search is under way for a new tenant to run The White Hart.
Kenny Shaw, landlord at The Swan at Compton, agreed to take on the historic Hampstead Norreys pub on a trial basis, newburytoday reported in January.
But Mr Shaw has since stepped away and Greene King has made the pub available to let.
Newburytoday questioned Greene King about what investment it was making to repair the pub, including its leaking roof; whether it considered it reasonable to expect tenants to sign long-term lease agreements under the current financial climate; and what would happen to the pub if a new tenant is not found.
A brewery spokesperson responded: “As Britain’s leading pub company and brewer, we pride ourselves on the unparalleled support we provide our business partners.
“With our expert business advice and insight, combined with leading investments and pub transformations, we’ve been recognised as Britain’s leading leased & tenanted pub company six times.
“We hope to find and then support the right operator at The White Hart who shares our vision for the pub.”
Mr Shaw declined the opportunity to comment.
Customers have not taken kindly to the news.
“Thought the last guys were doing a great job,” said one.
“[The] food was really good and started to get busy again, but then after a few weeks closed again. Such a shame.”
Another added: “They had someone who really wanted to make a go of it.
“Greene King needed to put some money into it, and they would have happily stayed. I can see it happening again.”
West Berkshire CAMRA pubs officer Paul Worsley also weighed in on the issue.
He said: “The daytime trade just isn't there. We've lost a number of pubs around here.
“It’s a case of use them or lose them, and pubs need trade all through the week.
“Wetherspoons does okay because the food and drinks are cheap.
“But if you go into any other pub in Newbury during the day from Monday to Friday, they're dead.”
Speaking more about the viability of long-term tenanted agreements, Mr Worsley continued: “The days of a traditional tenancy, where someone builds up the pub with a tenancy of 10, 15 or even 20 years and then sells the goodwill of the business once they retire, are long gone.
“The old traditional tenancies are for fully repairing and insuring, so everything is down to you, but obviously no one's going to put a new roof on a pub if they've got a five-year agreement.
“The pub company will have to deal with the higher expense structural works, repairs and improvements, because no one's going to spend hard-earned money if they haven't got a 20-year lease.
“But when the pub companies decide to sell when they can’t find a tenant, the only people buying pubs are generally for alternative use.”
And what does he think about pubs operating under private ownership instead?
“The rent they’re [Greene King] asking for [The White Hart] is only £20,000, which is nothing for that pub.
“I would expect the rent to be about £40,000.
“If it was under private ownership rather than tenanted, obviously they’re buying their beer at free trade prices, which is a lot cheaper, but you’ve then got to pay a commercial rent.
“All the pubs have an enterprise value, which is they want to see ‘x’ amount a year out of them.
“Some of that is in headline rent and the same again is the profit they make by excessively marking up suppliers to the pub.
“With a free of tie lease, you can buy your drink from wherever you like, but the rent would be higher.”
But there is an alternative agreement Greene King has introduced, as Mr Worsley explains: “There’s another agreement coming out now which, rather than a straight tenancy, is like a franchise.
“You don’t pay as much rent as you would expect to pay, and you can put a certain number of beers on free of tie.
“But they [the brewer] then charge a royalty fee, a percentage of your turnover.
“It shares the risk, but it depends on what minimum turnover they expect you to do.”
The annual rent for The White Hart is £20,000, with entry fees costing £14,400.
The pub has struggled to stay open since its previous landlords departed in December 2022.
