A well-established brewery and pub operator in the South West has announced a consultation process that could see a reduction in staff numbers as it navigates rising employment costs.
St Austell Brewery, which has been at the heart of the region’s brewing and hospitality industry for 174 years, employs over 2,000 people across its operations.
The company has confirmed it is reviewing its operational structure in response to significant financial pressures brought on by increasing employment costs.
Chief Executive Kevin Georgel highlighted the challenges facing the brewing and hospitality sector, citing the impact of rising National Insurance contributions, which were confirmed in the recent Budget. The additional costs, which are set to take effect from April, will place further financial strain on businesses already working hard to recover from the difficulties of recent years.
“The brewing and hospitality industry has faced an exceptionally tough period, and while we have successfully navigated many of these challenges, the latest rise in employment costs adds further pressure,” said Mr Georgel. “The additional burden amounts to around £3 million per year, and it is simply not viable to pass all of these increased costs on to our customers.”
With 160 pubs across the South West, as well as brewing operations in St Austell and Warmley near Bath, the company is now exploring ways to adapt to these financial pressures. #
While the consultation process may lead to a reduction of up to 40 roles, Mr Georgel emphasised that teams working in managed pubs would not be affected.
“This is not a decision we take lightly,” he added. “However, we must take these difficult but necessary steps to ensure the long-term sustainability and success of our business.”
The hospitality industry continues to navigate a complex economic landscape, and businesses like St Austell Brewery are working hard to balance financial sustainability with their commitment to staff and customers.