Tax Burden and Policy Failures Behind BrewDog Bar Closures, Says Former Executive

A former senior figure at BrewDog has pointed to mounting government-imposed costs and a deteriorating business environment as the primary drivers behind the mass closure of the brewer’s UK bar estate — not operational failure.

The announcement that Tilray Brands has acquired BrewDog’s global intellectual property has sent shockwaves through the licensed on trade, with confirmation that 38 UK bars will shut their doors immediately and 484 members of staff face redundancy.

But James Brown, who served as Chief Executive of BrewDog’s bars division and now leads Brava Hospitality Group, has pushed back firmly against any suggestion that the closures reflect underperforming venues or mismanagement alone — laying much of the responsibility at the door of fiscal and regulatory policy emanating from Westminster.

Writing on LinkedIn in the wake of the news, Brown said he felt driven to offer a perspective he believed was missing from much of the public commentary surrounding the brand’s difficulties.

He said; “In 2024, the majority of the bars that closed yesterday were profitable. Some were regularly delivering revenues north of £60,000 per week. Most were doing above £20,000. These were not failing venues in tired locations with no demand.”

“But when National Insurance rises combine with huge increases in business rates, the maths changes quickly.”

• Profitable bars become marginal.
• Marginal bars become loss-making.
• The best bars profit is curbed and can support less others with the hope that things will get better.
“And when owners, old or new, have no confidence that the business environment will improve in the near future, and they have optionality of where to invest their capital, the decision is out of their hands.”

“This isn’t unique to BrewDog. It’s happening across thousands of venues up and down the country. The difference here is brand awareness, scale and visibility.”

“For years now, government policy on rates and employment taxes has steadily eroded confidence in hospitality. The result? Over 200,000 hospitality jobs lost in recent years. Yesterday, another 484 economically active, tax-paying contributors were added to that number, people now potentially reliant on the state instead of strengthening it.”