BrewDog, the pub chain, will close ten bars due to ‘extremely challenging’ economic conditions.
James Taylor, the chief executive of the company, sent an email to staff informing them that it was no longer feasible to keep these sites open. The 10 locations are located in Aberdeen, Brighton Camden, Dundee Leeds Oxford Sheffield Shepherd’s Bush Shoreditch York. The bars will be closing on Saturday, 26 July.
Taylor became chief executive of the company five months after James Watt , its founder, , stood down by 2024.
Taylor wrote: “Following many considerations, we have unfortunately concluded that there are no realistic prospects of making these venues economically viable.”
The decision to keep them open would have a negative impact on the business as a whole, and make it difficult to invest in areas where we are confident we can grow. This is not just a reaction to the difficult UK hospitality market but also a proactive move to redefine the focus of the bar division.
According to the Office for National Statistics’ latest figures, the hospitality industry has been responsible for 45% of all job losses, since the budget in October. This is equivalent to 13,000 jobs per month.
The increase in national insurance contributions for employers and the living wage have had a significant impact on hospitality and retail employers.
BrewDog did not confirm how many jobs would be affected by its decision to close 10 bars. However, it said that it was “working to minimise the impact to our people” and would follow a meaningful and appropriate consultation process.
In recent years the company has come under scrutiny, with allegations being made that it promotes a toxic workplace culture. The company also reneged on its earlier commitment to pay new employees the “real” Living Wage.
Watt’s views on the workplace culture have also been criticized. He claimed that the UK is “one of the least work-oriented nations in the world” and criticized a focus placed on work-life harmony.
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