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Understanding Marston’s CRP: The Community Retail Partnership Model

Last updated: 24 April 2026

Most people taking on their first pub think a Marston’s CRP is just another tied tenancy—but it’s actually a completely different beast that sits somewhere between traditional tenancy and franchise. I took on Teal Farm Pub in Washington NE38 under a Marston’s CRP agreement on my birthday three years ago, and I’ve navigated the real financial reality, NSF audits, and BDM relationships that come with this model. The difference matters enormously when you’re signing a lease that will shape the next decade of your life. This article explains exactly what a CRP is, how it works, what it actually costs, and whether it’s the right fit for your pub ambitions.

What Is a Marston’s CRP?

A Marston’s CRP (Community Retail Partnership) is a tied pub tenancy where Marston’s PLC retains ownership of the property, you operate it as a tenant, and you are contractually obliged to buy wet goods exclusively from Marston’s distributors. It’s not a franchise—you’re not paying a flat percentage of turnover and you don’t get branded support. It’s not a traditional lease either—you can’t source your beer, spirits, or wine independently.

The CRP model sits in the middle. Marston’s offers the property, the tie (meaning you must buy their products), and ongoing business support through your Business Development Manager (BDM). You retain operational control, set your own menu, manage your own staff, and keep all of the profit margin after costs.

I can tell you from experience that your BDM relationship shapes whether this model works. A good BDM will help you understand your numbers, support stock management, and escalate issues. A poor one leaves you to figure out the financial reality alone.

The Tie Explained

The tie is the key restriction that defines a CRP. You buy beer, cider, spirits, wine, and soft drinks from Marston’s approved distributors at their set prices. You cannot source a cheaper pint of lager from an independent wholesaler, even if you find one down the road. This is non-negotiable in a CRP agreement and is enforced through your lease.

The upside: Marston’s guarantees you reliable supply, consistent pricing, and promotional support. The downside: you don’t control your own cost of goods, and if Marston’s prices rise, your margin compresses unless your turnover does too.

How a CRP Agreement Works in Practice

When you take on a Marston’s CRP pub, you sign a lease agreement that typically runs for 5 to 10 years. The basic structure is straightforward, but the operational reality has several moving parts.

Your Obligations

• Buy wet goods exclusively from Marston’s distributors—beer, spirits, wine, soft drinks, and mixers must come from approved sources at fixed prices
• Maintain the property to a specific standard—internal decorations, equipment, and fixtures must meet Marston’s guidelines
• Pass NSF audits—Marston’s conducts Net Sales and Fixtures audits annually to verify your stocktake accuracy and compliance with the tie
• Pay rent monthly—calculated on a sliding scale based on your turnover
• Meet health, safety, and licensing obligations—your responsibility, not Marston’s

What Marston’s Provides

• Property ownership and structural maintenance (roof, walls, boiler)
• Business Development Manager support and guidance
• Product supply chain and wholesale prices
• Training and promotional campaigns
• NSF audit administration

NSF audits matter far more than most new operators realise. I passed my NSF audit in March 2026 with a 5-star EHO rating, which meant my stocktake procedures were watertight and I was compliant with the tie. If your audit reveals you’ve been sourcing goods outside the tie or your stock records don’t match reality, Marston’s can take action against you, including lease termination in serious cases.

How CRP Rent Is Calculated

Marston’s CRP rent is calculated using Fair Maintainable Trade (FMT), a valuation method that estimates what a competent operator should achieve as profit, then applies a rent percentage to that figure. This is the single most misunderstood aspect of CRP tenancies, so let me break it down plainly.

FMT is not your actual turnover. It’s Marston’s surveyor’s estimate of what a reasonable pub operator in that location should be able to turn over in a full year. For a 180-cover community pub like Teal Farm in Washington, that might be £450,000 to £550,000 FMT, depending on the location, demographics, and trading history.

Your rent is typically calculated as a percentage of FMT—often around 50-60%, though this varies. If your FMT is £500,000 and your rent percentage is 55%, your annual rent is £275,000, or roughly £5,288 per week.

The Critical Detail: What If You Don’t Hit FMT?

Here’s where CRP gets tricky. Your rent is fixed based on FMT, not on what you actually turn over. If the surveyor values your pub at £500,000 FMT but you only achieve £380,000 in real turnover, you still pay the same rent. You don’t get a rent reduction because you underperformed.

This is why understanding pub profit margin calculations before you sign is absolutely critical. If FMT is unrealistic for that location or that pub, you will struggle to make money. Many licensees find out too late that they’re renting a pub at a price fixed to an FMT that was never achievable in the first place.

Rent Reviews

Your rent can be reviewed every three to five years (depending on your lease terms). Reviews are usually upward, reflecting inflation and market changes. You can challenge a rent review valuation, but Marston’s will use an independent surveyor, and you’ll need to fund your own valuation challenge—which costs money.

The Real Total Cost of Running a CRP Pub

This is where most new operators get blindsided. They see the weekly rent figure and think that’s the main cost. It’s not. Your total weekly cost structure looks like this:

Fixed Costs (Don’t Change Month to Month)

• Rent—typically £4,000 to £6,000 per week for a community pub
• Business rates—usually £400 to £1,200 per week depending on rateable value
• Insurance—public liability, contents, employers’ liability: £150 to £400 per week
• Utilities—gas, electric, water: £200 to £500 per week

Variable Costs (Change With Turnover)

• Product costs (wet goods from Marston’s)—typically 28-35% of wet sales revenue
• Food costs—if food-led, 25-35% of food sales
• Labour—staff wages, National Insurance, pension contributions: aim for 20-28% of turnover
• VAT—you collect VAT on sales and pay it to HMRC quarterly

At Teal Farm, my labour cost averages 15% against the UK benchmark of 25-30%, which is unusual because I’m operationally efficient and my team is stable. Don’t assume you’ll hit that. Most first-time licensees run at 25-30% labour cost in year one while they’re learning systems and managing scheduling inefficiently.

Before you sign anything, use Pub Command Centre to give you real-time financial visibility from day one. It costs £97 once, and it will show you labour %, VAT liability, and cash position week by week. That transparency matters far more in year one than anything Marston’s will tell you.

The Ingoing Costs Nobody Talks About

Beyond weekly running costs, there’s a significant cash outlay when you take on a CRP pub:

• Deposit—typically 12-13 weeks’ rent held as security
• First month’s rent in advance
• Stock purchase—initial inventory of beer, spirits, wine: £2,000 to £5,000 depending on pub size
• Fixtures and fittings valuation—you may inherit stock valued at thousands; you pay for it or it gets deducted from your deposit
• Professional fees—accountant, solicitor, surveyor: £1,500 to £3,000
• Training, signage, till setup—£500 to £2,000

Total ingoing costs can easily reach £30,000 to £60,000 depending on rent level and property condition. This is before you’ve opened the doors.

If you’re considering a pub tenancy and need to understand ingoing costs fully, don’t rush the calculation. Underestimating this cash requirement is one of the fastest ways to run out of working capital in month four.

CRP vs Traditional Marston’s Tenancy: What’s the Difference?

Marston’s offers several tenancy models, and they’re often confused. Here’s the practical difference between a CRP and a traditional managed lease:

Community Retail Partnership (CRP)

• You are the leaseholder—you have direct control and liability
• Rent calculated on Fair Maintainable Trade (variable)
• You must buy wet goods from Marston’s (the tie is mandatory)
• Your responsibility: profit and loss, staff, food safety, licensing
• Support level: BDM guidance and annual NSF audit
• Typical lease length: 5-10 years

Traditional Marston’s Managed Lease

• You are the leaseholder—same control and liability as CRP
• Rent may be fixed or variable
• The tie is mandatory (must buy from Marston’s)
• Your responsibility: same as CRP
• Support level: BDM support, more hands-on training
• Typical lease length: 10+ years

The main difference is rent calculation methodology and support structure. A CRP is positioned as a lighter-touch partnership with more flexibility, while a traditional lease often comes with more structured training and a clearer induction process. Both require the tie. Both hold you responsible for P&L.

Is a Marston’s CRP Right for You?

A Marston’s CRP works well for certain operators and is a poor fit for others. Be honest about which category you fall into.

A CRP Makes Sense If You:

• Have hospitality experience (ideally 3+ years in a pub or restaurant)
• Have cash reserves of £50,000+ to cover ingoing costs, working capital, and a financial buffer
• Want operational control but appreciate the structure of a tied agreement
• Can accept that you cannot source products outside the tie
• Are prepared for annual NSF audits and compliance requirements
• Have a realistic understanding of FMT and can achieve it (or exceed it)

A CRP Is Risky If You:

• Have no hospitality background and no financial runway—this model requires operational competence from day one
• Have less than £40,000 in cash reserves—you’ll be cash-constrained in year one
• Want to control your supply chain and negotiate prices—the tie removes that entirely
• Are attracted to the pub business for lifestyle reasons rather than profit reasons—CRPs demand business discipline
• Cannot realistically hit the FMT valuation—then your rent is unaffordable

What I wish I’d known before taking on Teal Farm is that the emotional reality of running a pub is far harder than the financial reality if you haven’t planned properly. My best revenue year was 2025, but only because I had systems in place from month one: a solid EPOS setup, disciplined labour scheduling, and real-time financial tracking through my accounting system.

The CRP model gave me structure and supply chain reliability. But those things don’t guarantee profit. Operational excellence does. If you’re not prepared to obsess over labour scheduling, stock loss, cash flow, and daily P&L, a CRP—or any pub tenancy—will exhaust and disappoint you.

Questions to Ask Your BDM Before Signing

• What was the previous tenant’s actual turnover in the last three years?
• How was the FMT figure calculated, and what assumptions were used?
• What happens if I don’t hit FMT—is there a rent review or break clause available?
• What support and training do I get in month one, month three, and month twelve?
• How often will my BDM visit, and what does a typical BDM meeting cover?
• Can I see a copy of the NSF audit checklist and the penalties for non-compliance?
• Are there any scheduled maintenance costs or capital expenditure I should budget for?
• If I want to break the lease early, what are the financial consequences?

Use our retail partner earnings calculator to model your profit at different turnover levels. This forces you to test whether the maths actually work before you’re legally committed.

For more information, visit retail partner earnings calculator.

For more information, visit best pub EPOS systems guide.