OnTrade Scotland Magazine - January Edition 2023

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ontradescotland.co.uk Magazine January 2023 Official Partners
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HAPPY NEW YEAR

Welcome to the January edition of OnTrade Scotland. It is a new year and like it or not it’s time for a new approach. We along with others will continue to champion the industry on any front possible and support our trade bodies, venues, brands and suppliers challenge any unfair or wrong challenge to our sector like DRS, Vat, and rates issues EVER STEP OF THE WAY.

However we ALL need to accept our industry is evolving and embrace new ways of working instead of looking back. Customers want experience, they want instagramable food and cocktails, they want good surroundings, a welcoming atmosphere, friendly staff, and SOMETHING DIFFERENT.

WE ARE ALL CUSTOMERS AND WE ALL WANT THIS. With the financial challenges that exist people are spending on experiences and spending well, for example the first tickets to sell out at the Hydro for 90% of gigs are not the “ cheaper seats “ they are the most expensive ones ….. that tells you a story. So we will be looking to support venues and brands moving forward collaboratively engage and work together in a better way in any way we can and we want to hear from you to provide that support in as many ways as possible.

Activations Sponsorship Events Acts

And as anyone that has worked with us knows it’s not about money ….. it’s about delivering the best possible cost effective experience, and making a difference to move forward. It has been a challenging year but also an amazing one.

We have met and worked with some amazing people and brands and built lasting friendships not just clients and that makes me proud. We are now achieving in excess of 200,000 interactions per week via our social media channels which is astonishing for a trade title but hopefully tells us we are providing fun informative content the magazine and website have grown massively and we are very grateful for ever single bit of support you provide it is not taken for granted at all.

I want to thank our partners Gilson Gray LLP & Pure Radio Scotland for all their support and engagement they have been amazing.

To all of our commercial partners thank you so much for all your support over the year. We have worked with some amazing brands over the year again, like Panther Milk, Dark God Rum, Old Mother Hunt, Cold Town Beer, Absolut, Island Slice Rum, Johnnie Walker and many, many more which has been amazing and we value the engagement and the approach to engage the industry, also a big thank you to all of the suppliers like Lynas Food Service, RS 100, BDP Contract Furniture & Via Play.

Most of all thank you to you the venues for your support and engagement it really, really mean a lot.

A couple of special thanks go to Michael & Michelle Bergson, Ash & Simone and all the team at Bucks Bar & Thundercat for your support and just being the people you are. Nick, Louise, Christine Raghav & Hannah and all the team at Signature Pubs for inspiring and supporting us. Graham & all the team at Radisson Red for they collaboration and support.

Jack & Dani at Boom Battle Bar for their support and friendship and their positivity in all they do. And last but not least thank you to Iain, Seth, Natalie James, Fiona, Britt, Callum Beattie, Dave, The Vandals, Gareth Gates, The Eves, Go Radio, Gina McKie, Stevie Lennon, Lockie,Thomas Melville, Gun and everyone we have worked with and have supported us over the year. THANK YOU LETS MAKE 2023 SOMETHING SPECIAL Justin Wingate Director at

press enquires or advertising opportunists please call or
10 6 12 McLarens on the Corner Dark God & Thunder 18 Scottish Budget falls short of delivering Christmas cheer 3
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Industry News

HOSPITALITY BUSINESSES ‘DESPERATELY NEED’ BUSINESS RATES SUPPORT

The Scottish Beer and Pub Association (SBPA), Scottish Licensed Trade Association (SLTA) and UKHospitality Scotland are jointly calling on the Deputy First Minister and Acting Finance Secretary, John Swinney to help hospitality businesses survive this winter with major business rates relief in Thursday’s budget.

In a joint statement, the three associations said: “The hospitality industry is vital to the economy of Scotland, to local high streets and communities, but the current economic downturn and a range of other unprecedented challenges will see many unfortunately fail without meaningful intervention on business rates.

“Not only must the Cabinet Secretary commit to matching a freeze on the UBR in Scotland, but he must also match the support for the sector in England and Wales, where a 75% rates relief package will be in place. The sector desperately needs this to survive, to continue to provide employment for staff and remain competitive with our neighbours.

“The industry expects that the Barnett consequentials coming

from Westminster will be ringfenced to support the sectors still scrambling along the road to recovery. The hospitality sector faced the brunt of the pandemic but managed to remain resilient and yet we continue to be held back, in part due to the discriminatory nature of the rating system in Scotland which disproportionately burdens the sector more than any other. This needs to be taken into consideration by the Finance Secretary when deciding the level of support.

“We repeat our calls for a further review of Scotland’s Commercial Rating System as soon as possible, but right now the Scottish Government must truly see the reality of the situation and lend the same support as that given to our English and Welsh counterparts.

“Every day is a challenge for our pubs and bars who have worked very hard post-Covid and Brexit to showcase Scotland’s hospitality industry, but we need more help to protect the jobs that outlets provide directly and the associated jobs in the wholesaling, brewing/distilling and food-producing sectors.”

SLTA ISSUES STRONGEST WARNING YET ON FUTURE

The SLTA (Scottish Licensed Trade Association) has issued its strongest warning yet that the licensed trade and hospitality industry north of the Border is “on its knees” with many businesses set to close permanently amid the cost-of-living crisis and other ongoing pressures.

Colin Wilkinson, the trade group’s managing director, also expressed bitter disappointment at Deputy First Minister John Swinney’s failure today in the Scottish Budget to follow the lead of England and Wales by implementing a 75% rates relief package for businesses.

Mr Swinney, who is responsible for the Scottish Government’s finance and economy portfolio while Cabinet Secretary Kate Forbes is on maternity leave, offered little respite for the hard-pressed hospitality industry, Mr Wilkinson noted.

“The industry is on its knees and businesses hoping for a busy and successful December trading period, which would have helped them get through the traditionally quieter months

of January and February, would have received at least some festive cheer if Mr Swinney had fully recognised their plight,” he said.

“With trains cancelled due to strike action, some cities and towns lacking taxi capacity and buses that aren’t always reliable, staff are finding it challenging to get to work and many people are simply not bothering to go out due to the difficulties getting home – this is not where the sector hoped it would be at this time.”

Mr Wilkinson added: “There is extended and increased relief for retail, hospitality and leisure businesses in England worth almost £2.1 billion and this is the most generous business rates relief in over 30 years, outside of Covid-19 support.

“Yet there is nothing for Scotland which means we cannot remain competitive with our neighbours south of the Border. Instead, our hospitality sector is facing a winter of discontent.”

4 ontradescotland.co.uk

Brand News

Desmond Payne MBE, Master Distiller for The World’s Most Awarded Gin1, will become the first-ever Master Distiller Emeritus for Beefeater in January.

After an unrivalled 55-year career in gin making, Desmond will take a step back from day-to-day production responsibilities and instead focus his efforts on the projects he enjoys most, such as judging international gin competitions and hosting VIP experiences for the brand.

Desmond will hand over responsibility for the worldwide production of Beefeater Gin to a new, yet-to-be-announced, Head Distiller. This role will be supported by Desmond’s loyal distillery team including stillmen and long-term partners, William, Keith, Dave, Jackie and James, who have learnt their craft under Desmond’s expert guidance.

Murielle Dessenis, Global Brand Director for Beefeater, comments: “This new title bestowed upon Desmond is a testament to his unique and immense contribution to

Beefeater and the wider drinks industry. This is the first time in the brand’s history there has ever been a Master Distiller Emeritus and this title has been granted as a tribute to Desmond’s lifetime service. Beefeater is still The World’s Most Awarded Gin1 because Demond has been a once-in-a-lifetime custodian of its quality, heritage and unchanged recipe inherited from James Burrough all those years ago. Thank you Desmond.”

Desmond Payne, Master Distiller for Beefeater, comments: “My whole career, but particularly at Beefeater, has been a great privilege. I have travelled the world, enjoyed a Gibson or Martini in some of the world’s best bars and most importantly, met people who are the very best at what they do. Beefeater has always been known for innovation and I am grateful this new chapter will allow me to keep a watchful eye on what this new era has in store. Beefeater really is a remarkable gin, made by hugely talented people, in the best city in the world - London.”

Desmond’s legacy is truly unparraleled with a suite of awards and accolades to his name. Most impressively, and perhaps the most widely known, is his MBE bestowed upon him by the late Queen Elizabeth II – presented by Prince William, the now Prince of Wales. In 2022, a suprise honour was bestowed by The Body of Yeoman Warders at the Tower of London, who made Desmond the second Honorary Yeoman Warder in history due to the special relationship he has cultivated over the years.

Pepsi MAX has dropped its most exciting football film to date, ‘Nutmeg Royale’. Centered around the beautiful game’s craftiest move, the carbonateddrink giant has tapped into its incomparable and proven ability to seamlessly bring the worlds of football culture and entertainment together to deliver an action-packed, star-studded campaign under its new international tagline ‘Thirsty For More’.

Leading with an epic hero film, fans can see the world’s all time football great and seven time Ballon D’Or winner - Leo Messi - alongside iconic players - Paul Pogba and Ronaldinho - take part in their toughest match to date. Outwitting each other, as well as unsuspecting locals alike, the elite football stars battle it out in a sensationally entertaining nutmeg tournament. The fast-paced action movie-style ad is packed with cameos, trick shots and Pepsi MAX’s signature humour, all to one of the most iconic football soundtracks of Fatboy Slim’s infectious ‘The Rockafeller Skank’. Adding to the legendary line-up, football influencers Luva de Pedreiro and Kaljit Atwal can also be spotted showcasing their trademark skills. As part of its new international tagline ‘Thirsty for More’ Pepsi MAX is championing the ambition of ‘Generation Thirsty’ - a tribe of individuals with a curious mindset - by shining a light on the next generation of amazing talent, making Luva and Kaljit the perfect fit for the brand.

PEPSI MAX® DEBUTS WORLD PREMIERE OF ACTION PACKED FOOTBALL FILM BEEFEATER MAKES DESMOND PAYNE
ITS FIRST-EVER MASTER
5
MBE
DISTILLER
6 ontradescotland.co.uk

McLarens on the Corner

We start the new year with a vist to the amazing McLarens on the Corner. Part of the fantastic Signature Pubs Group the venue brings a warming slice of Edinburgh hospitality with fantastic Scottish food and impressively friendly staff.

McLarens on the Corner is a friendly local bar & restaurant on Edinburgh’s Holy Corner – only ten minutes from the city centre through many public transport links. They love to dish up sumptuous food & creative cocktails served with a whole lot of love. Whether you’re there for a coffee and a catch-up, a meal with your family or a drinks out with friends, you’ll find that they have a corner for every occasion.

The Scottish menu has a real focus on provenance so that you can enjoy only the best produce from our fields and

our oceans. They have created dishes that explore Scottish cuisine while not being afraid to twist some of the classic dishes that you know and love.

The team love creating new cocktails behind the bar. The ever-evolving drinks list includes classic McLarens cocktails such as ‘Life’s a Peach’, which is sweet and light! As well as a few fun and different drinks to whet your whistle.

Proud to pour local Edinburgh Cold Town Beer and a truly fantastic wine-list.

No matter the season, the Garden Terrace is the perfect

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place to grab a few drinks or enjoy a bite to eat with friends. Soak up a few rays during the day, or cuddle up around a fire pit with blankets in the evening. Their popular Ski Gondolas are the perfect getaway for an intimate catch up with a loved one.

Murray Tavendale, General Manager of McLarens on the Corner said ‘We have thoroughly enjoyed the festive period here at McLarens on the Corner. As well as offering our usual ALC & Festive menu throughout the venue, we came up with some innovative & fun campaigns which the locals all thoroughly enjoyed. From our annual Reindeer Trail, bringing back our famous Bubble Waffles, offering hot serves to-go and hosting creative wreath making classes. Now we are looking forward to what fun we can carry on and offer into 2023.’

The team have lot’s of exciting things planned for January to entice you out of the cold January blues! Pop into

claim your Edinburgh’s Flavour Card to receive 25% off drinks OR FREE KIDS MEALS from the 3rd – 31st January. **T&C’s attached**. This card will then give you access to different exclusive monthly offers across many Edinburgh venues; https://shop.edinburghsflavour.co.uk/

Looking for somewhere to occupy the kids afterschool? McLarens is the perfect cosy venue offering complimentary Cookies & Milk for children when an adult orders a hot drink, running Monday – Friday – 3-5pm.

On Wednesday 25th January the team at McLarens are introducing a special Burns Night with Highland Park whisky on their first-floor restaurant. Expect a delicious 3 course Burns menu with a Highland Park cocktail on arrival plus Scottish entertainment with a piper & the address to the haggis! Keep an eye on their website for more information.

The whole family is welcome at McLarens on the Corner, Murray and his team look forward to welcoming you soon!

8 ontradescotland.co.uk

In collaboration with Synergy Commercial Finance and Asset Finance Solutions

To say the last few years in the hospitality industry has been difficult would be an understatement and on the back of the economic fallout the need for funding for equipment, refurbishment and property has increased, whilst access to funding has tightened.

DMK Finance and commercial partners have been working in the hospitality finance sector for over 17 years. We have a breadth of knowledge and experience which we can put to good use to help your business find the right funding for you. For some this may be your first time looking for finance, for others you may not have access to the funding you have had before. We have access to over 150 funders and can use our access and experience to find a solution that you may have struggled to secure on your own.

Whether you are a hotel, restaurant, pub or café (or all four) you will likely have been hit hard and need to have access to finance specialists who can work with you to find solutions from property loans to asset finance for equipment or spend more time to find bespoke solutions using multiple funders we have a team of experts on hand to help you.

Our minimum loan for asset finance is £25k and £150k for property however we can look at smaller amounts on a case by case basis if part of wider solutions.

Funding Available

Asset Finance

A range of flexible asset finance solutions to support your business plans.

Business Loans & Short Term Finance

Varying options available including secured & unsecured business loans. Bridging and short term finance for property and business purposes, including auction finance.

Investment Mortgages

Corporate buy-to-lets, single acquisitions through to multi-million pound portfolios and refinance of existing investments.

Commercial Mortgages

Commercial property mortgages for investment purposes, owner occupiers or refinance.

Working Capital Finance

Invoice discounting and factoring, credit/debit card factoring, payroll finance and trade finance.

Development Finance

Ranging from refurbishment of individual properties to full development finance including 100% financing.

Contact Us

If you would like to work with us or if you require further information, it couldn’t be easier to get in touch.

DMK Property Finance Ltd is an independent commercial finance broker not a lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent financial advisors and so are unable to provide you with independent financial advice. DMK Property Finance Ltd may receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them. DMK Property Finance Ltd is an appointed representative of AFS Compliance Ltd which is authorised and regulated by the Financial Conduct Authority under number 625035.

dmkfinance.co.uk/ontrade-contact
Thundercat Bar Diner & Dark God Rum collaborate go bring the new year in with some Dark God Thunder cocktails

THE CANDY APPLE

Dark God Rum Khalua Vodka Creme de menthe Milk Cream Chocolate
THE AFTER EIGHT
Dark God Rum Sugar Ginger Cranberry Lemon
JANUARY GYM MEMBERSHIP Dark God Rum Orange Juice Apple Juice Pineapple Juice Lycee Syrup Lime Passionfuit
THE HOGMANAY HANDSHAKE
THE
Dark God Rum Apple Juice Caramel

on the decline. During their heyday, ships built on the Clyde accounted for 20% of the world,s ships, an amazing feat for such a small population.

The inspiration behind the brand was his Grandfather, who was a plater for Scott’s Shipbuilding & Engineering, a skilled job involving measuring, marking, and cutting metal plates ready to be fitted to the ships structure by the riveters. In his spare time, he had an interesting hobby of making homemade wine, and when he used to look after Andy and his sister at the weekends, they would go out into nearby woodlands and forage for flowers and berries to make wine with. Those exact botanicals were the starting point for our award-winning gin recipe today.

Taste notes / Flavour

A classic London dry gin with perfumed citrusy aromas of orange, lemon, lime. The palate is dominated by the citrus and herbaceous flavours and floral notes like gorse, elderflower is well-balanced with alcoholic warmth.

Working with hospitality sector

Since launching in October 2021, we have built great relationships with local hospitality venues but it’s now time to grow further afield. We have started to build relationships with a handful of venues in Glasgow and Edinburgh and these partners hold the key to really developing the brand. We know we have a great tasting product that resonates with our customers and by putting our gin in the hands of the right people at the frontline of hospitality, we hope to go from strength to strength. When a venue likes your product, it’s a massive helping in hand in getting the masses to taste it. When it comes to working with new partners, it’s great to be involved within the venue doing some brand activation in tastings and building awareness.

WHAT,S NEXT

In 2022 we won and were nominated for several national and international awards but we also had our share of challenges in relation to our intellectual property and for the most part thought we would have to rebrand but I’m pleased to say this has been resolved. We had another couple of products that were due to launch in 2022 but had to be put on hold. We’re now delighted to be in the position to keep the Shipyard Gin name and be able to build the brand again and look forward to releasing our first flavoured gin in the Spring and then something a little special later in the year.

Andy Samuel, the founder of Shipyard Gin wanted to celebrate the rich history and success of the Glasgow and West of Scotland shipyards, instead of focusing
WWW.SHIPYARD-GIN.COM

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We have the experience & partnership to position the right partners for your event to bring in not only funding but offer a great experience to your guests.

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We can provide filming and content creation for events, shows, advertising projects, music videos or bespoke plans due to the diverse crew experience.

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We have a talented and creative team that works with some of the biggest brands out there that can support your brand or event from a PR standpoint as a joined-up approach is key.

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Old Mother Hunt was launched during lockdown - Matt lost his job as an airline pilot at the beginning of the pandemic and I was a stay at home mum. Things got pretty desperate, pretty quickly and with two kids and a mortgage, we had no option but to create our own future. We decided we wanted to distil our own rum, something which is still quite unusual in the U.K as a lot of rum is imported. We distil it from scratch, with no added sugar, chemicals or colouring- just pure single rum and whole, natural ingredients.

Our silver rum is smooth and rich with a hint of butterscotch and an almond like finish.

Launching OMH during the pandemic has meant that we’ve not been able to grow our relationship with the hospitality sector in the way that we dreamed of. Lockdown meant we had to focus almost entirely on direct customer sales so now we’re focussing our attention on building up hospitality relationships.

We’ll be spending a lot of 2023 focussing on our barrel aged rums- filling up various different casks so that we can experiment with the different flavours and ages.

Being a micro distillery gives us the freedom to experiment with different flavours and launch small batch releases.

WWW.OLDMOTHERHUNT.CO.UK
WWW.OLDMOTHERHUNT.CO.UK

SCOTTISH BUDGET FALLS SHORT OF DELIVERING CHRISTMAS CHEER

Commenting on today’s Scottish Government Budget, Leon Thompson, Executive Director of UKHospitality Scotland, said: “The freeze on the business rate announced today is welcome news, and a key ask of UKHospitality Scotland, but we needed the Deputy First Minister to go further.

“Our businesses face a hard winter as costs continue to rise for them, whilst customers, concerned at their own spiralling costs and hit by rail strikes, are increasingly being more cautious and visiting venues less and less.

“What should be a time for hospitality to build up a financial cushion for the lean months ahead is instead resulting in cancellations and losses for many businesses. The lack of sector-specific relief on business rates for hospitality from the Scottish Government is painfully at odds with the support provided by the UK Government and Welsh Government to their hospitality sectors. By following their example, the Scottish Government would have extended a lifeline to struggling businesses so vital to our economy.

“This budget comes as our businesses were already counting the cost of the recent business rate revaluation process. This has resulted in many receiving higher valuations than before, which simply cannot be right after two years of Covid closures and restrictions for businesses

now gripped by severe financial challenges. While the details for the transitional relief scheme announced today are still to be released, it remains the case that these are simply sticking plasters patching up a dysfunctional system that is in desperate need of reform.

“Beyond the budget, it is very concerning to learn that the Scottish Government’s own Gateway Review into the Deposit Return Scheme concluded that the scheme is not deliverable, in full, by the go live date of 16 August 2023. DRS alone is already costing hospitality businesses and producers time and money as they work to prepare for it. This assessment throws the viability of the scheme into further doubt and in the current economic circumstances cannot be afforded by our businesses.

“Rather than holding hospitality back with burdensome and costly regulation, the Scottish Government should be supporting and applauding the significant contribution our businesses make to employment and vibrant community life across the country.”

18 ontradescotland.co.uk

There has historically been a view that licensed premises were an excellent investment for owners, however, that is not always the case. As an operator it can make sense to own your own property as it gives you complete control and during times like lockdown it may have been easier to negotiate a payment holiday with a lender than with a landlord. The downside is it restricts you to one property and means you as operator have to pay have to pay for all of the maintenance – if a property needs a new roof it will fall entirely to you which could be a significant outlay. If you own your property and that forms more than just your own licensed premises you are perhaps letting to others and again there is the stress of unpaid tenant rent.

Leasing a property does means less responsibility for the overall building, however, many leases place significant upkeep and decorating responsibilities on tenants. They also only last for a certain amount of time which can be a downside if tenants have spent huge sums on fit out without the guarantee of a longer lease. How can all of this be addressed no matter which position you are in? Read on for more information and advice.

At the start of a lease process, Heads of Terms can be an invaluable resource. These outline the agreement between landlord and tenant. Although they can take additional time to negotiate and there is often cost if they are to be formally agreed, they are worth their weight despite those costs as they should come out properly drafted, avoiding material issues arising throughout the lease negotiation process which could bring the process to a halt. If the main points are clear between both parties this can make the final process much more efficient and therefore cost effective.

While buying licensed premises may seem like a great investment for a landlord who only wants to tenant, certain areas and certain types of operation may not now be so attractive. The licensed trade has faced many challenges over the last number of years, from new legislation, smoking ban and then lockdown. Many have weathered the storm well but others are struggling and the trade bodies are still warning of issues arising. More support is needed to avoid mass closures within the licence and hospitality trade in Scotland. For some, when property is perhaps at a lower value this may be the prime time to invest. For others, particularly if lending is needed, this may be a risky time. If you are a landlord considering investing or an operator considering buying, contact us for a chat with our licence and hospitality team before doing so and we will be able to point out some of the highlights to consider.

Having got past the Heads of Terms stage, both landlord and tenant then need to think what about what comes next. Most real estate solicitors will tell you that is when due diligence starts. Who is the tenant; is it a limited company or an individual; does the tenant have licence trade experience or is this a first venture; does the tenant have a good covenant (financial backing) or are there third parties involved the landlord wants to know about? All this is relevant and may lead to additional information and security being sought by the landlord and provided by the tenant.

If there is a question of limited company, those behind the company may be asked to give personal guarantees. These are unpopular but can be capture restrictive in time – again for a landlord receiving pushback from a tenant on pages or a tenant concerned about giving these, please contact our hospitality and licensing team as there are ways to potentially satisfy both sides even if a personal guarantee is needed. If there is a question about covenant or operator experience then lengthier deposits may be sought which sometimes impact on an operator’s budget, particularly if a premises needs an extensive fit out.

Leases can be 40 page documents or 240 pages depending on the premises and how much protection and restriction a landlord wants in place. Tenants can also be protected by their lease and they should look at the key points very carefully. It is tempting to just gloss over the document because it is long and arguably not very interesting! But for both parties it is important to be clear on specific points.

Even if tenants are experienced operators but are venturing into a new concept or geographical area, a break option may be a useful tool to allow them to walk away if the concept or location do not

Mudassar Rafi
Whether you are a well-established operator with one or more premises, an operator hoping to expand in 2023 or someone who owns your own premises and may therefore rent part of it out, making you a landlord, leases are an important part of most licensed premises’ everyday operation. Without a liquor licence, licensed premises cannot operate. Equally, they need premises and that means regulating how they occupy those premises and often more importantly, how much that is going to cost.

work. With break options it is really important the tenant takes note of the notice period. Some break options require as much as 12 months’ notice and if that notice period is missed the break option is lost and the tenant could be tied in for the rest of the lease.

Rent review is normally only upwards but needs to fit with the tenant. Sometimes, particularly in the aftermath of Covid and other issues facing the licensed trade, a “market rent” is not feasible and a landlord may have had to accept that the paper rental value for a premises is not going to be achieved due to other market conditions. That may mean agreeing staggered rent over the first few years increasing the rent up to a market rent level. That helps an operator as it allows them to see clearly where they will be for the first period of their operation and if the rent is for a fixed sum it avoids rent reviews which may impact a business negatively in the first period.

Tenants may have taken on premises as a shell and then spent huge sums of money fitting them out. Leases often also contain decoration provisions therefore even though tenants have may have fitted out the interior they may find an obligation on them to maintain windows, premises exterior, roofs with general maintenance, painting and so on. Sometimes there is huge amount of detail in leases about this upkeep (perhaps explaining why some leases are so long!) and tenants must be aware of these timescales in order that they can plan to ensure they have proper finances and time to have these carried out.

Rent free periods to support fit out are also advisable and these could be split between rent free and half rent again to allow the operator to transition into opening without financially over burdening the new business or concept. Fit outs and dilapidations are a big area of contention particularly in the licensed trade where fit outs can run to six figure sums. Premises are often let as a shell and landlords can then insist they are put back to a shell before they

are handed back. If they are not returned to being a shell the landlord can apply what is called dilapidations which means the tenant has to pay the landlord for the premises to be returned to a shell. Often this will cost more than if the tenant had done the work themselves. This can be hard for a tenant to understand as they have often spent huge sums of money on their fit outs and are very proud of their look, logo, branding and so on. If tenants are leaving a property, bearing in mind that could be for a positive reason because the operator has expanded their business and require a larger premises, they should take advice and negotiate with the landlord on dilapidations particularly to try to avoid as much expense at exit as possible.

Although it may seem minor, any breach of a lease could be a reason for a landlord to serve notice and having spent huge amount of time and sums of money planning an execution for a licensed premises an operator does not want a minor issue to negatively affect their relationship with their landlord or to result in notices being served.

It is tempting to ignore leases which have been in place for a longtime or which have been renewed but January is a great time to consider these things. If you are an existing operator with a number of successful premises are you clear on all of the relevant dates in your leases? If not, at Gilson Gray our real estate element of our hospitality and licensing team can carry out a review highlighting all of these important dates, deadlines and anticipating any rent reviews or other seemingly minor but potentially very important matters. If you are planning to expand your business, starting off in the licensed trade or if you are a landlord, our team offers expert advice and assistance to all licensed trade operators and landlords.

Take the opportunity of a new year to discuss with us how we can both support you and review your current position, all while offering the potential of enormous savings.

We’re honoured to have been chosen as the exclusive partner of OnTrade Magazine Scotland. As one of Scotland’s full-service law firms we’re able to offer specialist legal, property and financial services.

We’re here to help in a time when support and clarity are needed most – offering valuable advice and insight on everything from licensing, business financing, employment and real estate. Different people. Different approach. Different results. To find out more please call Jo Millar on 0141 370 8116 or email jmillar@gilsongray.co.uk

The right advice has never been more important.
EDINBURGH I GLASGOW I EAST LOTHIAN I DUNDEE gilsongray.co.uk
Staying on top of the business’s financial position and getting good advice at an early stage is critical. If you would like further information please contact ontrade@gilsongray.co.uk.

CIRCULARITY SCOTLAND ANNOUNCES REDUCTION IN FORECAST PRODUCER FEES FOR DRS

Circularity Scotland, the administrator of Scotland’s Deposit Return Scheme, has announced that forecast producer fees have been reduced for every type of material included in the scheme, in what is being hailed as a ‘big result’ for industry.

The producer fees, which have been reduced by 40% in some cases, are calculated for each type of material and now reflect the variations in collection costs as well as the sales revenues for collected materials.

The scheme administrator has also announced that the timing of cashflows from producers to Circularity Scotland for deposits have also been extensively reviewed. The revised profile of payments will see a reduction in cash to be paid by certain producers at the point the scheme goes live (particularly those retaining the use of UK-wide products).

These changes are a result of Circularity Scotland’s ongoing dialogue with industry to reduce the cashflow impact of the scheme on producers, as well as engagement with the Scottish Government, which recently announced revised guidance around return point exemptions.

The final version of the Producer Agreement, including updated forecast fees and cashflows, is now available to view on the Circularity Scotland website.

David Harris, Circularity Scotland CEO, said: “As scheme administrator, Circularity Scotland’s work is well under way to ensure that the Scotland’s DRS is a success and runs effectively, efficiently, and at as low a cost as possible, from August 2023.

“The subject of forecast producer fees has been a huge focus for us, and we’ve been working with government and all stakeholders to make positive strides in this area. The reductions we’ve been able to announce today will lower all producer DRS costs and bring about significant reduction in Day 1 cash requirements.

“This is a big result for industry and our work continues

to find even greater efficiencies. More information will be released shortly on the calculation of fees and administration of the scheme. In the meantime. Circularity Scotland will continue to work on initiatives to further reduce the cashflow impact of the scheme on producers and optimise the cost of operating the scheme. We will update industry in due course.

“We’re also here to help drinks producers prepare for scheme registration and our registration portal is open - so that businesses can appoint Circularity Scotland as their scheme administrator, which means we’ll manage their registration with SEPA and some of their scheme obligations.”

Drinks producers - defined under the scheme as brand owners, importers or website operators selling singleuse containers made from PET plastic, glass, steel or aluminium, sized between 50ml and 3 litre - need to be registered with the scheme’s regulator, SEPA, by 28th February. Any drinks producers not registered by this date will be unable to legally sell scheme articles in Scotland after 16th August 2023.

SEPA producer registration opens on 1st January 2023.

To help producers with the application process, Circularity Scotland has prepared a guide to the registration process and a guide to the Producer Agreement, which is available on the website.

Circularity Scotland’s customer service team are on hand to answer any questions relating to registration or on DRS itself. They are available from 9am-5pm Monday to Friday and can be reached on 0141 401 0899.

They can also be contacted via the contact form on the website.

22 ontradescotland.co.uk

Satelliet UK is doing

to help the environment - we call it Mission Hospitality

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its part

Since our humble beginnings nearly 70 years ago when the Company was founded by Bobby Lynas, Lynas Foodservice has been dedicated to one word, Service.

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