The world-famous Scottish brewer, BrewDog has introduced it would shut 10 bars this weekend, because it turns into the newest main employer to be hit by the continued disaster within the hospitality sector.
Over e-mail, the brand new BrewDog CEO, James Taylor, knowledgeable employees that it was not viable to maintain the websites open “on account of their dimension, location and different limiting components”.
Tax rises in April have devastated revenue margins and led many pubs, bars, and eating places to lift costs or lower jobs to outlive. With a serious participant like BrewDog struggling to remain afloat, the closures are a warning sign to the remainder of the business.
Earlier this month, hospitality commerce physique the British Beer and Pub Affiliation (BBPA) stated it expects 378 to shut this 12 months throughout the UK, representing multiple a day.
Which BrewDog bars are closing?
10 BrewDog bars are on account of name final orders this Saturday. The affected websites are Dundee, Brighton, Leeds, Oxford, Sheffield, and York.
Three websites in London (Camden, Shoreditch, and Shepherd’s Bush) may even be shut down, in addition to the corporate’s flagship bar in Aberdeen.
With websites within the US, Australia, and Dubai, the corporate presently employs round 3,000 folks in its 71 UK bars. It isn’t but clear what number of BrewDog employees members may lose their jobs.
In a observe to employees, Aberdeen Dwell stories that Taylor stated: “Regardless of our greatest efforts, and the onerous work of the groups in every of those bars, it has merely not been potential to discover a components to make these bars viable on account of their dimension, location and different limiting components.
“We’ve got sadly concluded that there isn’t a life like prospect of creating these venues commercially viable.”
NIC rise drains hospitality income
Whereas not referring to any particular “limiting components”, there was outcry within the sector over the rise in employers’ Nationwide Insurance coverage Contributions (NICs), which got here concurrently a brand new hiked minimal wage.
In hospitality, which has massive workforces and tight revenue margins, the mixed price will increase have been a dying knell for a lot of companies. Many have been compelled to chop jobs in response.
Latest International Payroll Alliance (GPA) evaluation discovered that because the NIC announcement within the 2024 Autumn Funds, the variety of PAYE workers within the UK has fallen by over 160,000.
Final week, this was confirmed by the commerce physique UKHospitality, which stated it had been the hardest-hit sector because the finances, accounting for 45% of all job losses.
Bother at BrewDog
Right now, BrewDog is well-known as a multinational model and pub group. It was first based by James Watt and Martin Dickie in Fraserburgh, Aberdeenshire, in 2007 through a £20k mortgage. In 2010, it featured within the Startups 100 Index and have become a unicorn seven years later.
Nonetheless, the agency confronted accusations of a poisonous office tradition and inappropriate behaviour by Watt in 2022. Legal professionals for Watt stated the allegations have been false. The corporate precipitated additional controversy for its resolution to cease being a Dwelling Wage employer in 2023.
Extra not too long ago, there was additional bother on the high for BrewDog. Watt departed the corporate in Could to launch a actuality TV present. James Arrow, who succeeded him, tapped out after lower than a 12 months, and Taylor took over the function in March.
Aiming to be third CEO fortunate, Taylor’s subsequent transfer seems to be a consolidation of the enterprise’ property after it posted a pre-tax lack of £6.7m in 2023.
“This resolution isn’t merely a response to the difficult UK hospitality market, however a proactive resolution to redefine the bar division’s focus”, he added in his observe to employees.
“As we evolve BrewDog right into a extra targeted and sustainable enterprise, we’ve needed to be trustworthy about the place we’re – and the place we’re heading”, he added.

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