Heineken, the global brewing giant, announced plans to reopen 62 pubs that were closed in recent years and invest £39 million in refurbishing hundreds of locations across the UK. This investment in the company’s Star Pubs & Bars chain aims to create more than 1,000 new jobs.
The UK pub industry has been hit hard by closures, with the British Beer and Pub Association (BBPA) estimating that between 2021 and 2023, an average of 500 pubs closed each year due to the impacts of the Covid-19 pandemic and cost-of-living pressures. The number of Star Pubs & Bars’ locations has declined from 2,700 in 2019 to 2,400 today.
A Star Pubs & Bars spokesperson explained that the number of open pubs in their portfolio can fluctuate due to various factors, but generally, around 95% of their pubs are operational at any given time. The company’s renovation plans will target more than 600 pubs, focusing on areas where more people work from home, reflecting changes in commuting patterns due to the pandemic.
Heineken stated that with more people working remotely and seeking to reduce travel costs, the refurbishments will focus on updating pubs in suburban areas to attract more local customers. By the end of 2023, the company expects to have reopened 156 pubs, bringing the number of closed pubs in its estate back to pre-pandemic levels.
During the pandemic, pubs faced significant restrictions, including mandatory table service, group size limits, and a 22:00 curfew, which contributed to their decline. The brewing industry faced additional challenges due to inflation, especially in commodities like barley and aluminium, compounded by the war in Ukraine that escalated energy and grain prices.
The average price of a pint of draught lager rose from £3.76 in February 2020 to £4.71 in March 2023, illustrating the impact of inflation. The number of pubs in the UK fell from 47,200 in 2019 to 45,350 in 2023, with the overall decline being part of a long-term trend. A decade earlier, in 2013, there were 52,500 pubs in the UK.
Some of the reopened pubs have been shut for several years. For example, The Ship in Worsbrough, Barnsley, was closed for four-and-a-half years before reopening in February 2024 after a £370,000 refurbishment. The Ashford Arms in Derbyshire, closed since March 2020, was reopened after a joint £1.6 million refurbishment by Star Pubs and Longbow Venues. The Coach & Horses in Carlisle, which had a poor reputation, was given a £300,000 makeover, resulting in a significant transformation.
To encourage customers to return, Heineken is focusing on modernizing pub spaces using “subtle zoning” to create distinct areas for different activities, such as watching sports or dining, without interfering with each other. Dividing screens, varied lighting, sound systems, and different furniture styles are among the approaches to define these zones.
Heineken’s investment in refurbishing its pubs is part of a broader trend of recovery in the UK pub industry, suggesting a resurgence after the blows from the pandemic and rising living costs. Greene King, a major pub chain, recently announced a £40 million investment in a new brewery by 2027, demonstrating its “long-term commitment to British brewing.” The BBPA welcomed these developments, seeing them as signs of confidence in the UK’s beer and pub sector.
In his March Budget, Chancellor Jeremy Hunt extended a 75% business rate discount for retail, hospitality, and leisure firms until 2025, worth up to £110,000 per business. This, alongside the alcohol duty freeze continuing until February 2025, may provide some stability for the pub industry as it seeks to rebuild. The BBPA’s chief executive, Emma McClarkin, called for a longer-term and more supportive fiscal and regulatory framework to encourage further growth and investment in the sector.
