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Gloucestershire Business News

Heineken serves up £39m tonic for ailing pubs

In a move that counters the pub sector's recent flow of negative reports, Dutch beer giant Heineken has revealed plans to invest £39m this year in upgrading and reopening pubs within its Star Pubs estate.

More than 600 venues are in line for the cash boost. Star Pubs' businesses in Gloucestershire include such venues as the Three Oaks in Matson, while the group is also currently seeking new tenants for the King's Arms in Gloucester Road, Cheltenham, and the Britannia Inn on Tewkesbury's High Street.

With 612 earmarked for upgrading and reopening, the investment aims to create 1,075 new jobs and is being made on the back of in-house research that suggests, despite the cost of living crisis, pinters remain keen to get back to the bar.

A spokesman told Punchline-Gloucester.com: "A quarter (612) of Heineken UK's 2,400 pubs are in line for improvement, with 94 of these set for makeovers costing on average £200,000.

"The investment will also cover works to reopen 62 long-term closed locals in 2024. By the end of the year, Heineken UK will have reopened 156 such pubs since the start of 2023, reducing the number of closed pubs in its estate to pre-pandemic levels."

With working from home more commonplace and people looking to save on travel, major refurbishments will concentrate on "transforming tired pubs in suburban areas into premium locals", the brewer said.

They added: "The revamps are designed to broaden each pub's use and appeal, giving people additional reasons to visit. Subtle zoning will signpost pubgoers to the area likely to suit them best, enabling different groups of customers to simultaneously enjoy a variety of activities - from watching sports to dining - without disturbing each other."

Dividing screens and distinct changes to lighting, sound systems and furniture styles are also planned, to help delineate the zones, with the refurb aiming to raise each pub's game "from the toilets to the gardens".

Retail tweaks, in the meanwhile, will include overhauling cellars with state-of-the-art dispense equipment to ensure consistently perfect pints and repositioning tills to speed up service.

Heineken says this paves the way for its ambition to be net zero across its entire value chain by 2040, with key changes being smarter heating controls, better insulation and low-energy lighting. Such savings aim to save each pub £12,500 per year and cut energy use by 15%.

Lawson Mountstevens, Star Pubs' managing director, said: "People are looking for maximum value from visits to their local. They want great surroundings and food and drink as well as activities that give them an extra reason to go out, such as sports screenings and entertainment. Creating fantastic locals that can accommodate a range of occasions meets this need and helps pubs fulfil their role as vital third spaces where communities can come together."

Star is on track to have the lowest number of closed pubs since 2019, he added.

"We've spent more than £200m upgrading and maintaining our pubs over the last five years, and we'll continue to invest to keep them open and thriving. Time and again, we see the value consumers place on having a good local and how important it is to communities. Well-invested pubs run by great licensees are here to stay, but like all locals, they need government support to reduce the enormous tax burden they shoulder."

In a case study of the potential changes, Star's Coach & Horses, in Carlisle, closed for a year in a bid to shake off a "poor reputation and few customers". After a £300,000 transformation into a family and dog-friendly local serving freshly prepared food, the pub's new direction has attracted neighbouring residents and made it a destination dining spot with sell-out Sunday lunches for people from across Carlisle.

Licensee Susan Graham said: "People avoided the pub for years. Their chins hit the floor when they saw the change; they love the classy new look and warm, welcoming feel. We were mobbed when the pub opened - locals are delighted to have a place to go on their doorsteps. Food is nearly 50% of our trade but being able to come in for drinks or to watch sports is equally important to customers. The pub is a lifeline for some of our older regulars - it's part of their routine where they can meet their friends.

"Our experience reflects Star's research, which shows people are going out less but want better quality when they do, including a lovely environment."

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