Heineken UK is committing GBP 39 million (approx. USD 50m) to upgrade and reopen pubs in its Star Pubs' estate throughout 2024. The decision reflects the confidence of Heineken that the British pub scene will recover after the disruptions of the pandemic years. It is expected to create approximately 1,075 new jobs, which were lost before.
A majority of those pubs became part of Heineken when the Dutch brewing group purchased Punch Taverns in 2017 (inside.beer, 5.1.2017) and Star Pubs & Bars in 2018 (inside.beer, 19.6.2018).
The news is particularly notable because Stonegate Pub Company, the UK's largest pubs and bars group, is currently grappling with significant financial uncertainty as it seeks to refinance its GBP 2.2 billion (USD 2.7 bn) debt, putting more than 4,500 Stonegate pubs at risk (inside.beer, 10.4.2024).
Of Heineken UK's 2,400 pubs, a quarter (612) are slated for improvements, with 94 earmarked for extensive makeovers averaging GBP 200,000 (approx.USD 250,000) each. Additionally, the investment will facilitate the reopening of 62 long-term closed establishments in 2024, marking a significant milestone. By the year's end, Heineken UK aims to have revived 156 such pubs since the beginning of 2023, effectively reducing the number of closed pubs in its estate to pre-pandemic levels.
With remote working becoming more prevalent and individuals seeking to economize on travel, the refurbishments will focus on rejuvenating tired pubs in suburban areas, elevating them into premium destinations. The renovations aim to diversify each pub's offerings and appeal, providing patrons with multiple incentives to visit. Strategic zoning will guide customers to areas that suit their preferences best, enabling different groups to engage in various activities simultaneously, from sports viewing to dining, without disturbance. Innovations like dividing screens and distinct changes to lighting, sound systems, and furniture styles will delineate these zones. Embracing a timeless classic aesthetic, the new designs promise enduring appeal, meeting evolving customer expectations with high-quality execution touching every aspect of the pubs, from restroom facilities to outdoor areas.
Moreover, common enhancements will include modernizing cellars with cutting-edge dispense equipment to ensure consistently excellent pints and optimizing till positions to expedite service. As part of Heineken UK's commitment to achieving net-zero emissions across its entire value chain by 2040, significant projects will incorporate energy-efficient measures such as heating controls, insulation, and low-energy lighting. These measures, costing approximately GBP12,500 (approx.. USD 16,000) per pub, are projected to reduce energy consumption by 15%.
Lawson Mountstevens, Star Pubs' Managing Director, emphasized the importance of offering maximum value to pub visitors. He highlighted the enduring allure of pubs as vital community hubs, lauding the efforts of licensees and the impact of ongoing investments. Mountstevens underscored the crucial role of well-invested pubs, supported by dedicated licensees, in fostering community cohesion. He emphasized the need for governmental support to alleviate the substantial tax burden borne by pubs, ensuring their sustained success and contribution to local communities.
