Lidl begins works on its first ever pub in the world - based in the UK

Construction is now underway on the 84 square metre public house adjacent to the supermarket's existing store in Dundonald, east Belfast.

The new venue is expected to open its doors to customers this summer.

Having been six years in the making, the development marks the culmination of a lengthy legal and planning battle that went all the way to the High Court.

The reason Lidl is building a pub rather than simply applying for an off-licence comes down to the complexities of Northern Ireland's licensing framework, which operates differently to the rest of the United Kingdom.

In Northern Ireland, retailers must clear two significant hurdles before they can sell alcohol.

First, they must acquire a licence that has been surrendered by another business, typically a pub or off-licence that has closed, under a system known as the surrender principle.

This places a strict cap on the total number of premises permitted to sell alcohol at any one time.

Second, they must pass an inadequacy test, demonstrating that the number of existing licensed premises in the area is insufficient to meet local demand.

Lidl was unable to pass the inadequacy test for a standard off-sales licence at its Dundonald store, the BBC reports.

However, it was able to pass the test for a pub licence, as two bars in close proximity to the store had closed in recent years, making the application viable.

Rivals challenged the plan in the High Court, arguing Lidl was exploiting an unlawful loophole, but the challenge was dismissed in January 2025.

Mr Justice Colton ruled that the law did not prevent a business from taking an innovative approach and that novelty alone was not grounds for refusal.

Gordon Cruikshanks, regional managing director for Lidl Northern Ireland, said the company was delighted to finally be moving forward after such a lengthy process, adding that shoppers in Dundonald deserved equal access to the retailer's full product range.

He said: "Lidl has been a part of the Dundonald community for more than 20 years and in that time our shoppers and residents have been unable to avail of Lidl Northern Ireland's full product range due to licensing restrictions."

The pub will not operate within the supermarket itself, but in a separate premises next door, accessed independently from the store.

It will have a floor space of 60 square metres and a seated capacity of up to 60 customers, offering a professionally managed hospitality experience.

The focus will be on selected lines from Lidl's beer, wine and spirits range, with an emphasis on promoting local Northern Irish suppliers alongside the retailer's wider selection.

Lidl’s pub will be built by MMG Contracts and is currently supporting 15 jobs, with a further eight permanent positions expected to be created when the pub opens.

Mr Cruikshanks also pointed to significant population growth in the area as an additional justification for the pub.

Dundonald had seen its population rise by more than 20 per cent in recent years, placing greater demand on local hospitality provision.

Due to the unique circumstances which has allowed Lidl to construct the pub, namely the closure of two nearby bars, it is unlikely the supermarket chain will be replicating the model across its 13,000 stores worldwide.

The development comes after Northern Ireland's communities minister, Gordon Lyons, rejected the findings of a report last year which recommended reforming the surrender principle to increase competition and innovation in the market.

That decision means the licensing landscape in Northern Ireland remains largely unchanged, leaving the Lidl pub as a one-off outcome of a particular set of legal and local circumstances.

The opening date remains subject to completion of construction and final approvals, with further details expected to be confirmed in due course.