The reasons behind the closures were cited as size, location and other limiting factors alongside the continued challenges facing the wider UK hospitality industry such as rising costs, increased regulation and economic pressures.
BrewDog expects to redeploy many affected team members across the business and it is currently going through a consultation process with all affected staff, which will last a minimum of 14 days.
In a note to staff from CEO James Taylor, the business said the decision was not one it had taken lightly but it had to evolve the company into a ‘more focused and sustainable business’ meaning it had to ‘be honest about where we are and where we’re heading’.
Business restructure
List of BrewDog bars closing:
Aberdeen flagship (Gallowgate)
Brighton
Camden
Dundee
Leeds North Street
Oxford
Sheffield
Shepherds Bush
Shoreditch
York
According to BrewDog, its bar arm will restructure, reflecting its long-term strategy.
As it aims to become an experience-led brand, it is evolving its bar strategy to focus on two core pillars:
- Destination hubs - large format, high-impact immersive venues like Waterloo, Las Vegas, Tower Hill, Berlin, Brisbane and Dublin that are brand flagships
- Community bars - smaller, local spaces that create deep connections with local communities
A BrewDog spokesperson said: “We can confirm that following a review of our bars business, we have made the difficult decision to close 10 bars, which reflects a more focused strategy and a rationalisation of our bar footprint.
“Despite our best efforts and the hard work of our teams, it has simply not been possible to make these bars commercially viable.”
Proactive decision
The spokesperson added: “This decision is not simply a response to the challenging UK hospitality market but a proactive decision to redefine the bar division’s focus for long-term and profitable growth - accounting for ongoing industry challenges, including rising costs, increased regulation and economic pressures.
“We are working hard to minimise the impact on our people and we expect to redeploy many affected team members across the BrewDog network.
“For those leaving the business, we’re providing as much support as possible during this transition.
“We remain passionate and firmly committed to our bars and optimistic about the future, as we still see significant long-term opportunity.”
