Tevalis Pub Review: What It Actually Means for Your Tenancy

Last updated: 2 May 2026

Most tied pub licensees don’t fully understand what a Tevalis pub review actually involves until the letter arrives in the post. You’ve probably heard the term mentioned during your ingoing meeting with your business development manager, or maybe spotted it buried in your tenancy agreement, but the reality of what it means for your cash flow and your ability to stay profitable gets lost in the detail. If you’re a prospective pub landlord considering a tied tenancy—or you’re already running a pub and a review letter has just landed on your desk—you need to know exactly what Tevalis does, how they assess your business, and what the financial impact could be on your bottom line.

This article cuts through the jargon and explains what a Tevalis pub review really is, why pubcos use them, what metrics they’ll examine, and most importantly: how to prepare your numbers so you’re not caught off guard when the assessment happens.

What Is Tevalis and Why Do Pubcos Use It?

Tevalis is an independent property valuation and market assessment service contracted by breweries and pubcos to review tied pub tenancies and determine whether rent, business rates, and other terms remain appropriate for the business and the location. Major operators like Marston’s, Greene King, Star Pubs, and others use Tevalis—and similar services—to conduct periodic reviews of their estate, typically every 3–5 years, though the exact terms depend on your individual tenancy agreement.

The reason pubcos use external services like Tevalis rather than doing assessments in-house is straightforward: it provides an independent, defensible valuation that stands up if the decision is ever challenged. From the pubco’s perspective, Tevalis protects them legally and ensures they’re not leaving money on the table. From your perspective as a licensee, it means the review is supposedly objective—but that doesn’t mean the outcome will be favourable to you.

When I took on Teal Farm Pub three years ago under a Marston’s CRP agreement on my birthday, the tenancy paperwork made clear that a periodic review was part of the deal. What wasn’t immediately obvious was how thoroughly they’d dig into my numbers and how significantly the outcome could affect my ability to operate profitably. Understanding what triggers a review, what they measure, and how to prepare your records is the difference between defending your business successfully and finding your rent hiked beyond what the operation can sustain.

How a Tevalis Pub Review Actually Works

When Tevalis is instructed by your pubco, they’ll typically follow a structured process that takes 4–8 weeks from start to finish. Here’s what actually happens:

Stage 1: Initial Contact and Information Request

You’ll receive a letter from your pubco or directly from Tevalis requesting financial information. This usually includes the last 2–3 years of trading accounts, profit and loss statements, and details of any significant trading events (refurbishments, seasonal variations, local competitions). Don’t panic—this is standard. But it’s also where poor record-keeping will hurt you.

If your P&L is disorganised, your labour costs aren’t clearly itemised, or you can’t explain major variations in your figures, you’ll struggle to mount an effective challenge to whatever Tevalis proposes. The licensees who fare best in reviews are those who have real-time visibility into their numbers and can explain their trading position confidently. That’s why tracking your labour percentage, gross profit split, and weekly cash position from day one matters—not just for your own management, but for your protection when external assessment happens.

Stage 2: The Valuation Process

Tevalis will examine your property using a multi-factor approach. They’ll look at:

• Your actual trading performance over the assessment period (turnover, GP, EBITDA)
• The location’s demographic profile, footfall, and trading potential
• Comparable rents being paid in the same area for similar properties
• Structural costs (business rates, utilities, insurance, lease terms)
• Market conditions and broader hospitality trends

They’re not being arbitrary. They’re building a mathematical model of what a fair rent should be based on the property’s trading capacity and current market rates. If your pub is turning over £250,000 a year with a 65% GP, and identical properties in your town are on £12,000 annual rent, Tevalis will reference that. Conversely, if you’re trading significantly below potential—maybe because footfall has dropped, or your offering has drifted out of step with customer demand—that will also show in the analysis.

Stage 3: Site Visit (Sometimes)

Depending on the circumstances and the initial findings, Tevalis may conduct a site visit. This isn’t an inspection in the EHO sense, but they’ll want to see the property, assess its condition, check the equipment, and understand the operational constraints. If you’ve invested in the pub, maintained it well, and invested in modern EPOS or cellar management systems, that creates a positive impression. Conversely, if the pub looks neglected or poorly run, that feeds into their assessment of trading viability.

Stage 4: The Report and Recommendation

Tevalis will produce a formal report recommending what they believe your rent (and sometimes other terms) should be. This goes to your pubco first. Your pubco will then typically write to you with the outcome and give you a period (often 28 days) to respond or challenge the findings.

The Financial Impact on Your Tenancy

Here’s the brutal honesty: a Tevalis review can significantly change your financial position. The outcome typically falls into one of three categories:

Rent Increase

This is the most common outcome if your pub is trading well and rents in your area have risen. Increases can range from 5% to 20% or more, depending on market conditions and your trading performance. In March 2026, when my Marston’s NSF audit passed, I was acutely aware that strong trading performance can trigger a rent review recommendation. If your turnover and GP are both up year-on-year, Tevalis will argue your current rent undervalues the property.

A rent increase directly impacts your bottom line. If you’re currently paying £15,000 a year and Tevalis recommends £18,000, that’s an additional £3,000 annual cost. At 15% labour cost (which is what I’m running at Teal Farm, well below the UK benchmark of 25–30%), that £3,000 represents roughly 200 additional pints you need to sell just to break even on the increase.

Rent Decrease or Confirmation

If the pub has underperformed, if comparable rents in your area have fallen, or if there are operational constraints limiting trading potential, Tevalis may recommend a reduction or simply confirm your current rent is appropriate. Decreases are less common but do happen, particularly in declining markets or if the property has structural issues affecting trading.

Adjustment of Other Terms

Beyond rent, Tevalis may recommend adjustments to business rates, tied beer price margins, or the length of your tenancy renewal. Some pubcos also use reviews as a trigger point to renegotiate tie arrangements or introduce new compliance requirements.

Before you sign any tenancy agreement, understanding what benchmarks Tevalis typically uses is essential. Use a pub profit margin calculator to model different rent scenarios and understand at what point a rent increase becomes unsustainable for your operation. This is foundational due diligence that most prospective licensees skip—and it costs them dearly when a review letter arrives.

How to Prepare Your Numbers Before a Review

The single most important thing you can do to protect yourself in a Tevalis review is to ensure your financial records are accurate, well-organised, and tell a coherent story about your business performance. Tevalis works from the numbers you provide; if those numbers are messy, incomplete, or contradictory, their interpretation will default to the pubco’s interests, not yours.

What Records You Need Ready

• Last 3 years of P&L statements – itemised by category (wet sales, dry sales, food, accommodation if applicable), showing cost of goods, labour, utilities, and overheads clearly separated
• Trading accounts certified by your accountant – if your business is a limited company or partnership, these need to be formally audited or accountant-prepared
• Weekly or monthly trading summaries – showing turnover, GP%, labour %, and cash position over time. This reveals trends and contextualises any peaks or dips
• Explanation of significant events – if you had a major refurbishment, a local competitor closed, or you introduced a major new trading stream (quiz nights, sports events, food service), document it with dates and impact
• Labour cost breakdown – itemise how much you’re paying yourself, how much you’re paying staff, and what proportion of trading is being reinvested in the business. This is crucial for defending a below-average labour cost position
• Evidence of investment and maintenance – photos, invoices, or records of equipment upgrades, refurbishments, or maintenance work. This shows you’re not extracting maximum profit at the expense of the property

If you’re currently running a pub and haven’t got these records in a clear format, start now. You don’t need expensive accounting software, but you do need consistency and clarity. Pub Command Centre gives you real-time labour %, VAT liability, and cash position from day one at £97 once—no monthly fees. Having that data to hand when Tevalis asks means you can answer questions with confidence rather than scrambling to reconstruct numbers from old till rolls and bank statements.

Understanding Your Key Metrics

Tevalis will focus heavily on these three metrics:

Gross Profit and GP%. Tevalis wants to see what your gross profit is as a percentage of turnover. A typical well-run pub sits at 65–70% GP. If you’re running at 60%, Tevalis may question whether you’re pricing your stock correctly or whether stock management (wastage, theft, pouring errors) is costing you margin. Conversely, if you’re at 72%, that signals strong control and operational efficiency, which supports an argument for sustainable trading at higher rent.

Labour cost as a percentage of turnover. This is where I have a significant advantage at Teal Farm. The UK benchmark for labour in hospitality sits at 25–30%, but I’m running at 15%. This is possible because I work the majority of hours myself, I’ve invested in efficient rostering, and I’ve trained my small team to work productively. When Tevalis sees labour cost at 15% versus the industry norm at 28%, they see a business with significant operational efficiency and spare capacity. That argument—”I can afford a modest rent increase because my cost structure is better than average”—is one of the strongest defences you can mount.

EBITDA and trading sustainability. Ultimately, Tevalis wants to ensure the rent they recommend leaves you with enough profit to reinvest in the business, maintain the property, and make a reasonable income. If your current rent leaves you with £500/month EBITDA and they recommend a £3,000 annual increase, they’ll justify it by saying there’s sufficient margin. If that calculation is wrong because your numbers are incomplete or unclear, you lose the ability to challenge it effectively.

Building Your Defence Case

If you anticipate a Tevalis review or have received notification one is starting, begin documenting your case immediately:

• Compile a summary of trading performance over the assessment period, highlighting any external factors (local economic conditions, competitive changes, staffing challenges, COVID impact if relevant) that affected your figures
• Gather evidence of comparable rents in your area—if you have contacts in similar pubs or can research local rent agreements, this informs what a “fair” rent should be
• Document any investment you’ve made in the property, equipment, or team training. This shows you’re actively improving the business, not passively milking it
• Prepare a written response explaining your perspective on the review, to be submitted during the challenge period. Make it factual, specific, and unemotional

What Outcomes Are Possible After a Tevalis Review?

In my 15+ years in hospitality and three years running Teal Farm as a Marston’s CRP licensee, I’ve heard about or experienced outcomes across the spectrum. Here’s what typically happens:

The Rent Is Confirmed (30–40% of cases)

Your current rent remains unchanged. This usually means either your pub is trading at a level consistent with comparable properties, or market conditions haven’t shifted enough to justify a change. If you receive this outcome, it’s good news—you’ve got certainty for the next review period, typically 3–5 years.

The Rent Increases Modestly (40–50% of cases)

You’re asked to pay 5–15% more. This is manageable if your trading is stable or growing. It’s here where having clean, well-organised figures matters. If you can demonstrate that your costs have risen (utilities, business rates, staff wage pressures), you can argue for a phased increase or a lower than recommended figure. Your pubco wants the rent increase, but they also want you to stay in business and keep paying it.

The Rent Increases Significantly (10–20% of cases)

You’re asked to pay 20%+ more. This usually happens when the pub has been underrented relative to its trading potential or when market conditions have shifted dramatically. This is the scenario where your defence case becomes critical. If Tevalis has recommended a £5,000 annual increase and your current EBITDA is only £8,000, that’s an existential threat to your business. That’s when you push back—with evidence, with comparable rents, and with your accountant’s support.

The Rent Decreases (5–10% of cases)

Your rent goes down. This happens rarely but does occur when a pub has underperformed, when comparable rents have fallen, or when the property has structural limitations (poor parking, difficult lease terms, restricted trading hours). If this happens, it’s usually a signal that the business needs fundamental change, not just a rest from rent pressure.

Red Flags That Trigger More Intensive Reviews

Not all Tevalis reviews are created equal. Some are routine valuations; others are triggered by specific concerns. Here’s what catches the attention of your pubco and Tevalis:

Unexplained Trading Drops

If your turnover has fallen 20%+ year-on-year and you can’t explain why, expect a more detailed review. Tevalis will investigate whether this is a temporary blip (local construction, temporary competition) or a structural problem (outdated offering, poor management, demographic shift). If they conclude it’s structural, they may reduce rent—but they may also recommend your tenancy be terminated if the pub is no longer viable.

Missed Rent Payments or Late Payments

If you’ve struggled to pay rent on time, your pubco will flag this to Tevalis immediately. It signals cash flow stress and increases scrutiny of the review. In these circumstances, expect Tevalis to model your numbers more conservatively and possibly recommend rent reduction, not increase—not out of sympathy, but because they need the pub to remain viable to ensure rent gets paid.

High Labour Costs or Other Structural Problems

If your labour cost is running at 35% (well above the 25–30% benchmark) and you can’t explain why, Tevalis may recommend lower rent to allow you to improve efficiency. Alternatively, they may recommend you reduce staff or change your operational model. The pubco’s interest is in a sustainable business that generates rent; if your cost structure is broken, that becomes part of the review scope.

Health and Safety or Licensing Issues

If you’ve had an EHO downgrade, failed a compliance audit, or had licensing issues, expect a more thorough review. These suggest operational risk, which Tevalis translates into reduced trading viability and may justify lower rent. Conversely, my 5-star EHO rating and passed NSF audit in March 2026 are significant advantages in any review discussion—they signal a well-run business.

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