Whitbread, the owner of popular restaurant brands such as Beefeater and Brewers Fayre, is set to make significant changes. The company plans to close more than 200 branded restaurants and shift its focus toward expanding its Premier Inn hotel business. As part of this restructuring, 1,500 jobs are at risk, subject to consultation.
The Strategy Behind the Cuts
Whitbread aims to optimize its portfolio by selling 126 less profitable restaurants and converting 112 others into new hotel rooms. This strategic move will add over 3,500 hotel rooms across its estate. The company believes that this investment will support its business growth in the coming years.
A Challenging Decision
Dominic Paul, Whitbread’s chief executive, acknowledged that the job cuts were difficult but emphasized that they were necessary to drive the company forward. The changes are part of a three-year £150 million cost-cutting program.
A Strong Hotel Focus
Whitbread’s decision reflects the changing landscape in the hospitality industry. While its in-house restaurants continue to perform well due to strong hotel occupancy, the broader pub and eating-out market has seen a drop in demand. By converting restaurants into hotel rooms, Whitbread aims to pursue hotel expansion with lower investment.
