More than 700 lessees have signed up to the Punch Growth Lease since its launch in January 2001, with more set to follow.
Punch Pub Company reports that around 70% of its customers are opting to take the new style Growth Lease when offered a choice of lease renewal options.
The Punch Growth Lease offers a number of benefits to lessees including longer term security of between 10 and 25 years, a guaranteed discount scheme offering up to £50 per barrel off invoice from day one, and access to a vast range of leading drinks brands.
Lessees also benefit from professional machines management support, which is designed to help them develop income from machines in return for a 50% share of the profits.
Latest sales figures released by the company show that pubs operating on the Punch Growth Lease are bucking the industry decline when it comes to ale and lager volumes, with above average beer sales compared to an industry wide down turn in beer sales.
Pubs that haven't benefited from refurbishment have seen beer volume increase by 7%, and those which have received investment are seeing growth in sales of well above 7%.
More lessees (around 90%) are also opting to purchase non-tied products such as minerals, wines and spirits.
To date only 28 Growth Lease pubs have been assigned, accounting for just 4.4% of the converted estate.
Francis Patton, Punch Pub Company's commercial director, said that the performance of the Growth Lease had helped overcome some original scepticism from the industry and business partners.
"After a fairly quiet start, the conversion to the Punch Growth Lease is really gathering momentum and with more than 700 already signed up we expect to break the 1,000 barrier before too long," he said.
"The increasing number of business partners converting to the Punch Growth Lease reflects how attractive the option is.
"With the guaranteed off invoice discount scheme, paying up to £50 per barrel from day one, and the longer term lease security of between 10 and 25 years, our lessees are able to plan more effectively and grow the value in their businesses."
Investment trends show that over one third of pubs on the Punch Growth Lease have benefited from joint investments funded by the company and individual lessees.
"There is a real incentive for the company and individual lessee to invest in a business which has a longer term vision and the commitment of both parties," added Francis Patton.
One lessee who took the Punch Growth Lease, Liz Morrison, who runs the Black Swan, a village pub near Warrington, said the PGL offered long term security for her and husband Mike.
"We have a twenty year lease and one of the biggest attractions of the Punch Growth Lease was the chance to sign up for so long," she said.
"We can also manage our cash flow a lot better by having beer discounts off invoice, rather than waiting for a cheque."
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