BrewDog to axe 10 bars ‘within days’
The move has come under fire from trade unions, with Unite Hospitality claiming staff at some sites were given “just three days” notice.
BrewDog is set to shut 10 bars, including its flagship Aberdeen site, citing economic headwinds.
In a statement posted to The Shareholders Forum, James Taylor, chief executive of the Aberdeenshire-based brewer, said the closures were part of a “strategic review”.
Taylor said the firm had “faced continued challenges” in the UK, including rising costs, increased regulation and economic pressure.
It comes after the independent brewer unveiled a series of new packaging designs in May, and struck a multi-year deal with West Ham, with experts wondering whether the move was a wise decision.
The bars set to close are in Aberdeen, Brighton, Camden, Dundee, Leeds North Street, Oxford, Sheffield, Shepherd’s Bush, Shoreditch and York.
Bars “not viable”
In the statement, Taylor added: “Despite our best efforts, it has simply not been possible to find a formula to make these bars viable due to their size, location and other limiting factors.
“Keeping them open would put pressure on the wider business, making it harder to invest where we know we can grow.
“This decision is not simply a response to the challenging UK hospitality market but a proactive decision to redefine the bar division’s focus.
“This is not a decision we’ve taken lightly. But as we evolve BrewDog into a more focused and sustainable business, we’ve had to be honest about where we are – and where we’re heading.”
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The company has not disclosed the number of employees impacted, and told BBC Scotland News its focus was on redeployment.
Industry snapback
Unite Hospitality slammed the news with a post on X, reading: “Brew Dog have announced that they are closing 10 flagship bars from Aberdeen to Camden, as soon as THIS FRIDAY!
“In what universe is THREE DAYS a morally (or legally) acceptable notice period for a proper redundancy consultation for the workers impacted?!”
This comes after the beer giant kicked off the new year by closing six bars.
Just five months ago, James Taylor stepped up as BrewDog’s new CEO and Lauren Carrol as COO, after James Arrow stepped down for personal reasons.
BrewDog was co-founded by James Watt and Martin Dickie in 2006 in Dickie’s mother’s garage in Fraserburgh, Aberdeenshire.
Challenging environment
The latest financial accounts for BrewDog showed revenue had ticked up from £321m to £355m in the year ending in 2023. But higher costs and write-downs on underperforming bars meant that pre-tax losses increased from £30m to £59.2m.
Britain’s hospitality sector is currently battling high tax burdens, regulatory pressures and rising operational costs, with the British Beer and Pub Association (BBPA) expecting to see one pub shut per day in 2025.
In June, the average price of a pint of beer in the UK hit approximately £5.17.
Oakman Inns also filed for administration yesterday, with 14 of its sites acquired by Upham Inns.
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