I am not claiming it to be rocket science; anyone with a modest understanding of current working practices in the UK AWP (OK, OK - Category C) market – and mine is no better than modest – but with an acute memory for the way it used to be, would come to the same conclusions.
That is, that the worm might well turn and the brewery machine controllers (OK, OK, retailers) will be told how much they are going to pay in rent for the machines in their pubs – which is how it should be.
I well remember a friend of mine, Frank Manzi, in his Regent Automatics days, who said he’d sold out his operation because he was “fed up of being told what they [brewery machine controllers] are going to pay… it’s a bit like a restaurateur opening his doors, lying down and permitting the diners to walk over over him and then telling him what they’ll pay for their dinner.”
Apt. To the point. Correct. And it only happened in our industry.
Now, they (the controllers – retailers) are running out of their best weapon, which is the industry itself; they could always rely on one operator breaking ranks, opening his doors and lying down.
A large chunk of the operating industry is owned by the Austrians – who also own the two largest manufacturers; another large chunk of the operating business is rumoured to be in the sights of a German company. Only the IOA remains, or may soon remain, as independent and if they stay in line, the industry will (at last) be able to insist on a prix fixe on that restaurant menu.
The rumour is that more than one retailer is rattling their sabres and approving new Bell-Fruit games with the famous dongle, but (surprise, surprise) are refusing to pay the extra premium. With costs-versus-rental income so marginal, that leaves the operators in a fix, unless of course they stand firm or seek shared terms (which the Austrians do in the German market). We reckon the Austrians, certainly, will stand firm – and they control Bell-Fruit.
And what happens if there is a particularly good machine available right now? My understanding is that Bell-Fruit has a couple on test which are initially showing sharp uplifts in average incomes. It becomes a sensible commercial decision, does it not? If the machine will take an extra £20 a week, then paying an extra £10 a week for it is surely sound economic sense.
If that becomes the option, which will be the first of the retailers to break ranks? And the worm will surely have turned…
