Heineken has announced a substantial £39 million investment plan to refurbish and reopen numerous pubs across the UK under its Star Pubs & Bars chain, signaling a robust revival in the sector and the creation of more than 1,000 new jobs.
Heineken’s refurbishments to revive local pubs
As part of its commitment to rejuvenate its network, Heineken plans to renovate over 600 pubs, approximately a quarter of its 2,400-strong chain.
This decision aligns with changing consumer behaviors, notably the decrease in city-center commutes, as more people work from home and look to minimize travel expenses.
The focus will be on enhancing pubs in suburban areas, transforming them into premium local establishments.
Addressing the pandemic’s heavy toll
The UK pub industry has faced significant challenges over the past few years, from mandatory closures during the Covid pandemic to ongoing financial pressures spurred by rising living costs.
According to the British Beer and Pub Association (BBPA), an alarming rate of 500 pubs per year closed between 2021 and 2023.
Heineken’s initiative aims to bring the number of closed pubs in its estate back to pre-pandemic levels by the end of the year, with plans to have reopened 156 pubs since early 2023.
Economic pressures and market adjustments
Heineken’s refurbishment strategy comes at a time when the hospitality sector is grappling with inflationary pressures, notably on key commodities such as barley and aluminium.
The geopolitical situation, including Russia’s invasion of Ukraine, has further exacerbated the cost of energy, fuel, and grains, influencing operational costs and consumer prices.
For instance, the average price of a pint of draught lager in the UK soared to £4.71 in March from £3.76 in February 2020.
Reopening historical pubs
Among the notable reopenings, The Ship in Worsbrough, which had been closed for over four years, recently underwent a £370,000 refurbishment and welcomed patrons back in February 2024. Similarly,
The Ashford Arms in Derbyshire, a victim of the pandemic closures, has also been revitalized with a joint £1.6 million investment from Star Pubs and Longbow Venues, breathing new life into the community staple.
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