One of the biggest factors in what you pay for drinks isn't your negotiating skill - it's your tie status. Whether your venue is tied, free-of-tie or a free house determines who you're allowed to buy from, and therefore how much room you have to shop around. Here's a plain-English guide.
The three positions, explained
Tied pubs
A tied pub is contractually required to buy some or all of its drinks from a particular brewery or pub company (a 'pubco'), usually as a condition of a lease or tenancy. The tie often covers draught beer and cider, and sometimes more. Prices are set by the agreement, so there's limited scope to compare - though tied tenants in England and Wales may have rights under the Pubs Code, including the Market Rent Only (MRO) option.
Free-of-tie pubs
A free-of-tie pub leases its premises but is not tied on supply - it can buy drinks from any wholesaler. Crucially, many partially tied pubs are still free-of-tie on certain categories, very often wines, spirits and soft drinks, even when their draught beer is tied. If that's you, those categories are yours to shop around on.
Free houses
A free house owns its position outright on supply and can buy everything on the open market - the 'free trade'. Maximum freedom, and the most to gain from comparing suppliers.
How do I know which one I am?
Check the supply terms in your lease or tenancy agreement. In practice:
- If you signed a lease or tenancy with a brewery or pubco, you're likely tied on at least some products - read which ones.
- If you bought your freehold or lease with no supply conditions, you're a free house.
- If you're unsure, look at whether you're free to choose your own supplier for wines, spirits and soft drinks - many tied venues are.
Why it matters for your bottom line
Every category you're free to buy on the open market is a category where you can compare prices and switch to a better deal. Most venues never do - they settle with one supplier and rarely re-compare, leaving money on the table on the very products they are free to shop around on.
Even a fully tied pub is usually free-of-tie on wines, spirits and soft drinks - often its best-margin categories. That's exactly where comparing suppliers pays off most.
Making the most of the free trade
If you have any free-of-tie categories, the single best habit is to get more than one wholesaler quoting for your list at the same time, rather than accepting whatever your current supplier charges. That's the whole idea behind buying on the free trade: you upload your list once, every eligible wholesaler competes for it anonymously, and you switch to whoever gives you the best price and service.
Compare free trade drinks suppliers in your area - it's free for venues, with no card required.
This article is general guidance, not legal advice. If you're a tied tenant, check your agreement and the Pubs Code for your specific rights.