Heineken has announced plans to invest more than £44 million into upgrading 647 of its UK pubs, creating an estimated 850 jobs, according to the company. The investment, covering the company's Star Pubs estate, includes the complete overhaul of 108 pubs at a cost of £145,000 or more each.
The brewer said the refurbishment programme will focus on 647 of its 2,350-strong Star Pubs estate, with 108 locations undergoing complete overhauls. According to the company, the refurbishments will create distinct areas for drinking, dining, and sports or entertainment, with sports-focused venues being prioritised ahead of the FIFA World Cup. Heineken also announced it will trial a new contemporary pub model aimed at attracting younger adults, though further specifics were not disclosed. The company said this model will be tested at select locations to gauge its appeal.
Heineken reported that work has already started at 52 locations, including eight projects where it is reopening boarded-up pubs. The majority of the pubs in the programme are owned by the group but are independently operated by licensees, the company stated. No details have been released yet about which pubs are being upgraded or the full timeline for completion.
The investment comes as the UK pub sector faces significant challenges, including rising operating costs, reduced consumer spending power, and an increase in National Insurance employer contributions, according to industry reports. The government stated that it introduced additional business rates support from last month to help ease cost pressures, though the exact value was not disclosed. Lawson Mountstevens, managing director of Star Pubs, called on the government to reduce the overall tax burden on pubs, including business rates, VAT, and beer duty. In a statement, Mountstevens said that investment is essential for pubs to remain a first choice for socialising and to generate extra revenue amid sustained cost increases. He also said the investment will create flexible job opportunities and give many young people their first experience of the workforce. Mountstevens stressed that while the company can invest, fundamental reform of business rates is urgently needed to ensure the sector's future. He added that pubs are at the heart of communities and that without government action, many could face continued hardship.