Heineken to invest £42m in upgrading pub beer gardens and kitchens

Heineken is to invest a further £42m in upgrading its suburban pub estate this year driven by a rise in people working from home.

Some 660 Star Pubs and Bars sites, more than a quarter of the brewer’s pub arm, will benefit with 137 receiving a makeover costing more than £125,000.

The investment will go towards improving outdoor seating areas, adding lighting, heaters and additional seats so they can be used year-round.

Kitchens and bar areas will also be refitted to create a more ‘premium’ experience and food and drink offer.

Spending will be focused on suburban pubs and those on high streets near residential neighbourhoods to reflect the rise in people working at home during the week, Heineken said.

Lawson Mountstevens, managing director at Star Pubs and Bars, said: “People have stayed closer to home over the last two years due to the pandemic and have turned to their local for the kind of experience they’d previously have travelled to a city centre, restaurant or bar to find.

“They don't want to turn back time: they expect better quality including food and specialty drinks – such as cocktails – that are harder to recreate at home. It’s the same with gardens.

“Sitting outside at the pub has become a new occasion and, if the outside space is good enough, customers will wrap up to enjoy it even in the winter months. Outdoor facilities also remain important for those who are still cautious about going out as the UK learns to live with Covid.

“The cost-of-living squeeze is magnifying these trends. People are looking for a really great experience when they go out. These are challenging times. However, we are confident that well-invested pubs that adapt to market changes will have a bright, long-term future.”

Last year Heineken invested £38m in improving beer gardens and food and drink at 700 of its 2,400 Star Pubs and Bars.

Pubs which benefited included the White Swan at Ockbrook, near Derby (pictured), which received a joint £120,000 investment by Star Pubs and Bars and licensees Joanne Kershaw and Michael Lewis to revamp its interior and exterior, double the capacity of its garden terrace to seat 100 people, and add an outdoor bar and heaters.