Beer giant Brewdog is set to close ten of its bars across the UK, including its flagship pub on Gallowgate in Aberdeen, which was the company’s first-ever bar. This decision will put nearly 100 jobs at risk as these venues are slated to close on July 26, followed by a consultation period of at least 14 days for staff. Despite efforts to keep the locations operational, Brewdog stated that it was no longer commercially viable to maintain these bars amid a challenging market environment.

Founder James Watt explained to staff that the closures are part of a broader refresh of the company’s estate. This strategic shift responds to ongoing pressures such as rising costs, increased regulation, and economic challenges affecting the hospitality sector. Watt emphasised that the company intends to continue growing its bar presence by focusing on larger “destination” bars and smaller community-focused venues, hinting at a recalibrated yet optimistic future for Brewdog’s bar business.

The bars set to close include those in Brighton, Camden, Dundee, Leeds North Street, Oxford, Sheffield, Shepherds Bush, Shoreditch, York, and notably the Aberdeen Gallowgate site, which marked the company’s first foray into pub ownership. Brewdog’s spokesperson noted that the decision reflected a more focused strategy and rationalisation of their bar footprint aimed at long-term profitable growth, rather than simply reacting to the difficult hospitality market conditions.

This announcement follows a previous wave of closures in 2022 when Brewdog shut six pubs, including venues in Aberdeen and London, citing soaring energy bills and the lack of government support as key factors. At that time, Watt criticised the government’s handling of the energy cost crisis and described many hospitality businesses as facing untenable financial pressures. Unlike the current closure cycle, Brewdog ensured that all staff from the earlier closures were redeployed across other locations, aiming to prevent job losses.

The recent statement from Brewdog reassures that the company is making efforts to minimise the impact on employees. It expects to redeploy many staff members across its network and pledges to support those who will be leaving. However, the scale of the latest closures still marks a significant contraction for the brand and highlights the continued strain on the hospitality industry as operational costs remain high and economic uncertainty persists.

This move by Brewdog reflects wider trends in the UK’s hospitality sector, where rising energy costs, regulatory changes, and inflationary pressures are forcing many businesses to rethink their strategies. While Brewdog seeks to emerge stronger with a refined approach focused on fewer but larger and more viable venues, the closures underline the precarious state of the market for pubs and bars across the country.

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Source: Noah Wire Services