BrewDog has announced the closure of ten of its bars, with one location set to cease operations as early as this Friday. The popular Scottish brewery and craft beer company disclosed that its Camden branch will shut down on Friday, followed by other venues, including its flagship in Aberdeen, closing starting this Saturday.
The company has initiated a consultation process with the affected staff, which is expected to last at least 14 days. A spokesperson mentioned that BrewDog anticipates relocating many of the impacted employees to other bar locations.
CEO James Taylor conveyed a message to the staff, stating that the decision to close the venues was due to their lack of profitability. Taylor explained, “After careful consideration, we have unfortunately determined that these venues are not financially sustainable. Keeping them operational would strain our overall business, hindering investment in areas with growth potential. This move is not solely a response to the challenging UK hospitality market but a proactive step to refocus the bar division’s efforts.”
BrewDog’s spokesperson further stated, “Following a review of our bars business, we have made the tough choice to close 10 bars as part of a more focused strategy and streamlining of our bar presence. Despite our team’s hard work and efforts, these bars could not achieve commercial viability.”
The decision was criticized by Unite Hospitality, who expressed concern over the short notice given to workers impacted by the closures. They questioned the morality and legality of providing only a three-day notice period for proper redundancy consultations.
Overall, BrewDog aims to minimize the impact on its employees by potentially transferring affected staff within the BrewDog network while offering support to those leaving the company. The company remains committed to its bar business, optimistic about the future, and sees long-term growth opportunities.