Global hospitality chains and local British pubs alike sit at the sharp end of an economy squeezed by energy prices, post-pandemic shifts and layer upon layer of regulation. Yesterday the Pubs Code Adjudicator opened a formal investigation into Stonegate Group, the country’s biggest pub company with an estate of more than 3,000 tenanted and leased sites across England and Wales. The probe, covering the five years from 15 July 2021 to 14 July 2026, examines whether the operator met its obligations to provide transparent information and fair treatment to tied tenants.
At stake is not some abstract regulatory score-settling but the viability of thousands of community pubs that depend on the tied model for investment while relying on the code for protection against one-sided bargains. Stonegate, whose portfolio includes well-known chains such as Slug & Lettuce and Be At One, stands accused of possible shortcomings ranging from incomplete schedules of condition on premises to unrealistic rent projections that may have undermined tenants’ business plans.
The adjudicator has reasonable grounds to suspect failures in several specific areas. These include whether prospective tenants received full and clear descriptions of the premises, accurate lists of initial works with proper deadlines, and sufficiently justified rent proposals. Investigators will also look at how business development managers handled tenant requests, whether discussion notes were properly recorded, and whether the company’s annual compliance report gave a detailed and accurate account of its adherence to the code.
The Pubs Code provides important rights entitling tied pub tenants, and those in negotiations to take on a tied pub, to transparent information including with regard to the premises and the rent. This investigation will help us establish if Stonegate has met their duties under the Pubs Code.
Those words from Fiona Dickie, Pubs Code Adjudicator, underline the statutory purpose of the framework: ensuring tied tenants are no worse off than free-of-tie operators. She added that upholding the core principles of fair and lawful dealing remains the priority.
Data from the 2026 Tied Tenant Survey adds weight to the concerns. Tenant satisfaction with Stonegate ranked lowest among regulated pub-owning businesses for at least three years running, with particular dissatisfaction focused on repairs to pub premises. The survey results alone do not prove breaches, yet they signal persistent friction in a relationship that successive governments have tried to balance through legislation rather than outright dismantling the tied model.
Current and former tenants, along with other interested parties, have until 5pm on 12 August 2026 to submit evidence by email. Information supplied will not lead to identification in any published report without consent. The adjudicator has stressed that no decision has yet been reached on whether Stonegate failed to comply or on the extent of any non-compliance.