Two days after a majority of its hospitality employees announced their intention to unionize, Minneapolis-based Surly Brewing Company announced it will close its beer hall indefinitely beginning November 2.
“We ran all the numbers,” the company wrote on Facebook. “We looked at all the possibilities. But try as we might to find a way to keep the doors open and our team employed, the writing was on the wall: There was no longer a way forward for the Beer Hall.”
Revenue from the beer hall is down 82% compared to the same time last year, the company said. Surly estimated that if it continued operating the beer hall, it would lose around $750,000 over the coming winter.
“A drastic change was needed to stabilize the company and ensure the continued operations of our core business, brewing,” Surly wrote.
Surly admitted that the timing of the announcement to close its beer hall — two days after the hospitality and kitchen staff announced their plan to unionize — “is not ideal.”
“We respect their decision to turn to an outside organization for representation and will continue the dialogue,” the company wrote. “That does not change the fact that our plans to close the Beer Hall were put in place weeks ago with the announcement planned for this week.”
Sheigh Freeberg, the secretary of Unite Here Local 17, the union Surly employees were working with, told the Star-Tribune that the decision to close the beer hall is “a clearly illegal and disgusting act.”
Under current social distancing regulations, the capacity of Surly’s beer hall and beer garden is limited to 250 people in parties of four or fewer. Under normal circumstances, the fire code permits Surly to host 1,800 people inside and outside, according to the Star-Tribune.
Surly emailed its more than 100 beer hall employees today to inform them that they will be permanently laid off in November, according to a social media post by the organizing employees.
“Many found out first via social media that they will soon not have jobs,” Unite Surly Workers wrote. “We have not before heard mention of a closure come fall, and new hires have started as recently as this week.”
In an email from the company to Surly workers shared by Unite Surly Workers, staff members were told that they “do not have any bumping rights” and their end work date would be November 2.
“In other words, you do not have the right to take any other employee’s job,” the email said.
This email was sent out to 100+ Surly beer hall employees today. Many found out first via social media that they will soon not have jobs. We have not before heard mention of a closure come fall, and new hires have started as recently as this week. Say it with me: Union busting!! pic.twitter.com/wFgvoOQV3F
— Unite Surly Workers (@SurlyWorkers) September 2, 2020
Surly isn’t alone in deciding to close its taproom indefinitely during the pandemic. Frederick, Maryland-based Flying Dog Brewery announced in June it would close its taproom until at least June 2021. Two weeks prior to that announcement, Indiana-based Three Floyds announced it indefinitely closed its brewpub in Munster, citing safety concerns about the pandemic.