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UK – BrewDog to Shut 10 UK Pubs Amid Rising Costs and Strategic Shake-Up

by Alexander Jones-Redway
22 July 2025
in Europe, Latest
0
UK – BrewDog to Shut 10 UK Pubs Amid Rising Costs and Strategic Shake-Up

Craft beer powerhouse BrewDog has announced the closure of 10 of its bars across the United Kingdom, including its iconic flagship pub on Gallowgate in Aberdeen. The decision, which BrewDog says was driven by “ongoing industry challenges,” is set to impact locations in cities such as Dundee, Leeds, Brighton, Oxford, Sheffield, York, and three sites in London. Some of the closures are expected to happen within days.

The closures mark a significant moment for the Scottish brewery, which was founded in 2007 by James Watt and Martin Dickie in Fraserburgh, Aberdeenshire. Once celebrated for shaking up the global beer industry with its bold branding and unconventional marketing, BrewDog now faces the same economic realities plaguing many businesses in the hospitality sector.

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A BrewDog spokesperson described the move as a “difficult decision,” citing soaring operational costs, increasing regulatory burdens, and broader economic pressures. “Despite our best efforts, and the hard work of our teams, it has simply not been possible to make these bars commercially viable,” the company said in a statement.

“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,” the statement added.

Some of the pubs set to close — such as the Gallowgate location in Aberdeen — are deeply embedded in BrewDog’s history. But the company made clear that sentiment alone could not justify keeping underperforming locations open. “There is no realistic prospect of making these venues commercially viable,” the spokesperson said.

The decision has drawn sharp criticism from trade union Unite, which accused BrewDog of giving affected employees less than four days’ notice. “For BrewDog to give loyal workers less than four days’ notice of the closure of their workplace is not just morally repugnant — it is potentially unlawful,” said Bryan Simpson, national hospitality lead at Unite. “This is yet another example of a company that doesn’t have the slightest regard for basic employment law, let alone the welfare of their workers.”

Unite said it is currently supporting affected members in challenging the redundancies and urged any other impacted workers to seek legal support. In response, BrewDog said that a 14-day consultation process will be offered to staff at risk of losing their jobs. However, the company declined to disclose how many employees are impacted by the closures. It noted that its priority is to redeploy staff where possible within the business.

BrewDog built its brand on being the rebellious disruptor of the brewing world. Known for its aggressively unconventional marketing — positioning itself as the “punk” of beer — the company expanded rapidly, opening bars around the world. Currently, BrewDog operates 71 bars in the UK, including 17 in Scotland, as well as international outposts in the USA, Australia, and Dubai.

However, its public image has taken a hit in recent years. In 2021, an open letter from former staff accused the company of cultivating a “toxic culture” and fostering a “climate of fear.” In 2022, a BBC investigation reported further allegations of inappropriate behaviour involving co-founder James Watt — claims his lawyers strongly denied. Ofcom later ruled that the BBC programme had not been unfair to Watt or BrewDog.

Further controversy followed in 2023 when BrewDog faced backlash for scrapping the real living wage for new employees, opting instead to pay the legal minimum wage. James Watt stepped down as CEO in 2024 but retained a prominent leadership role as “Captain and Co-Founder,” maintaining his shares in the business.

Despite the turmoil, BrewDog has remained a major player in the global craft beer market. The company entered the Chinese market in 2023 through a joint venture with Budweiser. BrewDog’s financial results showed revenue of £321.2 million for the 2022–2023 financial year, and after years of struggle, the company reportedly returned to profitability in 2024.

Here is the full list of the BrewDog bars scheduled for closure:

Aberdeen Flagship (Gallowgate) Brighton Dundee Leeds North Street Oxford Sheffield York London Camden London Shoreditch London Shepherd’s Bush

As the UK hospitality sector continues to battle economic headwinds, BrewDog’s decision reflects a growing trend among major hospitality and food-service brands to streamline operations and focus on profitability over expansion. For BrewDog, which once prided itself on rapid growth and bold bets, this marks a significant shift in tone — and perhaps a new chapter in its post-“punk” evolution.

Tags: BusinessEconomyHospitalityUK
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Alexander Jones-Redway

Alexander Jones-Redway

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