Stonegate Pub Chain Investigated Over Unfair Landlord Treatment 2026

The Stonegate Group, Britain’s biggest chain of bars and pubs, is under investigation over concerns about possible unfair treatment of landlords who run more than 3,000 of its venues. The owner of the Slug & Lettuce and Be At One chains could face a fine of up to 1% of revenue—more than £16 million—if found to have breached the pubs code, legislation governing how pub-owning companies treat their tenants.

What the Investigation Covers

The pubs code adjudicator (PCA), Fiona Dickie, announced the probe after months of discussions with Stonegate regarding a small number of cases. The PCA said it has reasonable grounds to suspect Stonegate breached provisions of the code, which governs the company’s tenanted and leased pubs. The investigation does not cover the remaining estate of more than 1,000 venues, including managed brands like Be At One and Walkabout.

Key Allegations Against Stonegate

• Failure to provide accurate information about required repairs, which could impact publicans’ ability to run businesses profitably.
• Incorrect rent calculations based on profit forecasts that may not be realistic or evidenced.
• Unfair treatment by business development managers who liaise between the company and tenants, including improper recording of interactions.
• Withholding information from the PCA about alleged breaches.

Impact on Landlords and Tenants

The pubs code covers the fraught relationship between pub-owning companies and tied tenants, who lease premises in return for reduced rents and other benefits. If Stonegate is found guilty, the penalties could set a precedent for the industry. Over 3,000 tied tenants could be affected by the outcome of this investigation.

Comparison of Stonegate’s Pub Portfolio

Potential Consequences

The PCA can impose fines of up to 1% of Stonegate’s total revenue, which could exceed £16 million. This would be one of the largest penalties ever levied under the pubs code. The investigation also highlights the ongoing challenges in the UK pub industry, where tenant-landlord disputes are common.

Key Takeaways for Landlords

• Always request written evidence of repair obligations and rent calculations.
• Document all interactions with business development managers.
• Report any suspected breaches of the pubs code to the PCA.
• Understand your rights under the pubs code, including protections against unfair treatment.

FAQ

The investigation into Stonegate Group underscores the importance of fair treatment in the pub industry. Landlords and tenants should stay informed about their rights and the ongoing regulatory actions that may shape future practices.