Pub Stocktake Under a Tied Agreement Explained

For a complete overview of the process, read our complete guide to taking on a UK pub in 2026.

Last updated: 24 April 2026

Your pubco doesn’t own the stock in your pub — they own the pub itself, and they need proof you haven’t been helping yourself to the profits. That’s what a pub stocktake requirement under a tied agreement is really about. Most new licensees think a stocktake is just a once-a-year admin task. It’s not. It’s a legal obligation that protects the pubco’s position in the lease, affects your financial accountability, and directly impacts how you prove your trading figures to them. Get it wrong and you’ll be arguing about discrepancies that cost you money. Understand it, and you know exactly what you’re signing up for when you take the keys.

What Is a Pub Stocktake Under a Tied Agreement?

A stocktake under a tied agreement is a formal inventory count of all saleable stock in your pub, conducted by an independent third party appointed by your pubco, to verify the value and quantity of beers, spirits, wines, soft drinks, food, and other stock on a specific date. This count becomes the baseline against which your future sales figures are measured.

When you take on a tied pub — whether from Marston’s, Greene King, Admiral Taverns, or any other pubco — your lease agreement will include a clause requiring stocktakes at defined intervals. The most common requirement is:

• An ingoing stocktake when you take possession (the day you sign in)
• An annual stocktake, usually on a fixed date each year
• An outgoing stocktake if you leave the pub or if the lease ends

The stocktaker physically counts every bottle, glass, cask, and food item behind the bar, in the cellar, in storage, and anywhere else stock is held. They value it at cost price (what the pubco paid, not what you sell it for), and they produce a formal report detailing the total stock value on that date. This figure then becomes the official record against which your sales and purchases are reconciled.

How It Differs from Your Internal Stock Checks

This is important: your internal stock checks — the counts you do yourself or your staff do weekly or monthly — are not the same as a formal stocktake. A stocktake is always conducted by a third party who has no vested interest in the result. Your internal checks help you manage cash flow and catch problems early, but they’re not legally binding in your lease.

Why Pubcos Require Stocktakes

Pubcos require stocktakes because they need independent verification that you’re trading honestly, that stock hasn’t been lost to theft or waste, and to establish a definitive baseline for calculating your profitability and rent obligations.

From my experience taking on Teal Farm Pub three years ago under a Marston’s CRP agreement, I understood quickly that the stocktake isn’t personal — it’s how the pubco protects their investment. Here’s what they’re actually protecting:

Financial Control and Revenue Verification

Your pubco sells you stock on credit (or you pay upfront, depending on your agreement). They need to know that the stock you’ve bought matches the stock that’s left in the pub or been sold. A discrepancy — whether it’s stock missing, over-purchased, or underreported in sales — shows up in the stocktake.

If you report £5,000 in weekly sales but your stock has depleted by £3,000 of cost value, something doesn’t add up. The stocktake reveals that gap.

Protection Against Shrinkage and Loss

Shrinkage in hospitality is real: breakage, spillage, theft, waste, and poor pouring practices all reduce stock value. A stocktake allows the pubco to see whether shrinkage is within acceptable limits (typically 2–4% depending on the venue) or whether something is seriously wrong.

Rent Review and Fair Maintainable Trade

If your lease includes a rent review clause — and most do — the pubco may use stocktake figures and sales data to argue for an increase in rent under the concept of “Fair Maintainable Trade.” The stocktake is part of the evidence they use. If discrepancies suggest you’re under-trading, the pubco might argue your rent should reflect higher potential turnover.

How Stocktakes Work in Practice

A typical stocktake follows a standardised process: the pubco appoints a licensed stocktaker, they visit on a date you’re notified of in advance, you close or restrict service temporarily, they count everything, and you receive a report within days.

Before the Stocktake

You’ll receive notice — usually 2 to 4 weeks in advance. Your lease will specify the date or the pubco’s right to choose it. You’re expected to:

• Clear the pub of customers (or do the count after closing)
• Have all staff available to assist and answer questions
• Provide access to all storage areas, fridges, and cellars
• Have records of recent deliveries available

Some pubcos will give you the option to be present; others make it mandatory. I always recommend being there and having a manager or trusted staff member present too. You need to witness the count and flag any issues on the day, not discover problems weeks later when the report arrives.

During the Stocktake

The stocktaker will:

• Count all draught beers (measure remaining pints in each keg or cask)
• Count all bottled and canned drinks
• Count all spirits, wines, and other alcohol
• Count all soft drinks and mixers
• Count all food stock (if you serve food)
• Identify any damaged, expired, or obsolete stock
• Value everything at cost price

This can take 2–4 hours depending on the size of your pub and the complexity of your stock. For a 180-cover community pub like Teal Farm with regular quiz nights, sports events, and food service, you’re looking at a full morning or afternoon.

After the Stocktake

You’ll receive a formal stocktake report, usually within 7–10 working days. It will show:

• Total stock value on the date of the stocktake
• Breakdown by category (draught, bottles, spirits, etc.)
• Any notes about damaged or obsolete items
• The stocktaker’s certification

You should verify the figures against your own records. If you spot errors, query them immediately with your pubco. Once accepted by both parties, this becomes the official baseline for the next period.

Who Pays and Who’s Responsible

This is where many licensees get caught out. You pay the stocktaker’s fee, even though the pubco appoints them and you have no choice in who it is. The cost typically ranges from £150 to £400 depending on the size and complexity of your pub, but your lease will specify how it’s charged.

Cost Breakdown

On top of the stocktaker’s fee, you may also face:

• Travel costs — if the stocktaker has to travel from a distance
• Extended time charges — if your stocktake takes longer than the standard rate includes
• Report charges — some pubcos charge separately for producing the formal report
• Dispute resolution — if you challenge the figures, you may face additional costs

Check your lease to understand exactly who bears these costs. Most tied agreements place them on the licensee, but it varies.

Your Responsibility

You must:

• Make the pub available on the date specified
• Provide access to all storage areas
• Have staff available to assist
• Cooperate fully with the stocktaker
• Pay the fee promptly

If you refuse or obstruct a stocktake, you’re in breach of your lease. Your pubco can take action against you, potentially including forfeiture of the lease (eviction).

Common Stocktake Issues and Discrepancies

A small discrepancy after a stocktake is normal. Hospitality shrinkage of 2–4% is expected. Larger gaps between the stocktake figures and your sales records can trigger serious problems.

What Causes Discrepancies?

• Pour waste and spillage — staff training and pouring technique matter here
• Staff consumption — staff drinks or breakages that weren’t recorded
• Unrecorded promotions — free drinks or discounts that weren’t rung through the till
• Till errors — underringing sales or stock purchases not recorded
• Theft — deliberate theft by staff or customers
• Inaccurate stocktake — the stocktaker miscounted or miscalculated

Most discrepancies up to 3–4% of stock value are absorbed. If you’re consistently 6–8% or higher, your pubco will start questioning your trading practices, and you may face pressure to explain the loss or accept financial adjustments.

How Discrepancies Are Handled

If the numbers don’t match, your pubco will typically ask for an explanation. If you can’t provide one, they may:

• Require you to write down the loss (meaning you accept the financial hit)
• Reduce your future stock credits or rebates
• Use it as evidence of poor management in a rent review
• Flag it in an NSF (National Scheduled Franchise) audit, which can affect your standing with the pubco

I passed my Marston’s NSF audit in March 2026 with clean stocktake records. That matters because it signals to the pubco that you’re running an honest, well-controlled operation. Discrepancies stay on file and affect how the pubco treats you in disputes or negotiations.

How to Protect Yourself

The stocktake is formal, but it’s not infallible. Here are the practical steps I take at Teal Farm to protect my position:

Keep Meticulous Records

Before every stocktake, reconcile your EPOS data with your stock records. Know exactly what you’ve bought, what you’ve sold, and what should be left. When the stocktaker arrives, you should be able to explain any variance within 1–2%.

Using a good pub EPOS system that tracks stock movements is non-negotiable. It’s not just about sales — it’s about proving your position in a dispute.

Be Present During the Stocktake

Don’t leave it to the stocktaker. Watch the count, note any disputed items, and challenge anything that looks wrong on the day. Once the report is signed off, disputing it later is much harder.

Understand Your Stock Value

Request the cost price list from your pubco so you know what each product is valued at. The stocktaker uses cost price, not selling price. If you don’t know your cost base, you can’t verify the numbers.

Train Your Staff on Stock Care

Shrinkage comes from the bar and the cellar. Poor pouring technique, careless handling, and unrecorded wastage add up fast. Staff training on pouring consistency and stock respect directly reduces discrepancies and improves your stocktake results.

Use a Pub Profit Calculator**

Before and after a stocktake, use a pub profit margin calculator to verify your gross profit against industry benchmarks. If your margins are off, the stocktake will reveal it — and you need to know why before your pubco asks.

Know Your Lease Terms

Read exactly what your lease says about stocktakes: frequency, notice period, who pays, and what happens if discrepancies are found. Many leases have provisions for who bears the cost of disputes or recounts. Knowing this protects you.

Challenge Inaccuracies Immediately

If you believe the stocktake is wrong — if they’ve counted something twice, missed stock, or valued it incorrectly — challenge it within 7 days. Don’t wait. Once the report is filed with your pubco, changing it is much harder.

Understanding your pub stocktake requirement under a tied agreement isn’t about compliance alone — it’s about protecting your financial position and proving your trading integrity to your pubco. The relationship between you and your pubco depends on trust, and clean, accurate stocktakes build that trust fast.

Before you sign anything with a new pubco, know exactly what their stocktake requirements are, who bears the costs, and how discrepancies are handled. These aren’t abstract clauses — they directly affect your profitability and your ability to defend yourself in disputes.

The Pub Command Centre gives you real-time financial visibility from day one — labour %, VAT liability, cash position, and margin trends. £97 once, no monthly fees. Before you sign anything, know your numbers.

For more information, visit pub profit margin calculator.

For more information, visit retail partner earnings calculator.