- Do YOU work at Whitbread? Email [email protected]
Premier Inn owner Whitbread said today it will axe 1,500 jobs as it scales back on its restaurants to focus more on hotels.
The chain, which runs the likes of Beefeater and Brewers Fayre, announced it would sell off 126 of its branded eateries having announced a before-tax loss of £36m.
Whitbread made the announcement today after it received its latest financial report which showed strong sales in Premier Inn hotels.
But the food and beverage section has dropped two per cent in sales.
The division has dragged since the pandemic – likely due to the energy-led cost of living crisis – which led to customers spending less.
Employees across the restaurants owned by the hospitality giant will be holding their breath for more news, but the company boss said it will try its best to retain staff through redeployment.
Other restaurants owned by the hospitality business include Back + Block, Thyme Bar & Grill, Table Table and Cookhouse + Pub.
The job cuts are still subject to consultation and come from its total UK workforce of 37,000 employees.
Premier Inn owner Whitbread has said it will axe around 1,500 jobs across the UK. File image
Whitbread will convert 112 restaurants into new hotel rooms. File image of a Premier Inn
Whitbread said it plans to sell 126 of its less profitable branded restaurants, with 21 sales already having gone through. It will also convert 112 restaurants into new hotel rooms.
This could save around £90million in profit a year, the company claims. Overall profit before tax was up by 21 per cent (to £452 million) – and that was almost entirely due to Premier Inn.
Dominic Paul, Whitbread chief executive, said: ‘We recognise that our transition will impact some of our team members so we will be providing support throughout this process and we are committed to working hard to enable as many as possible of those affected to remain with us.’
Last year, the company considered options to sell part of its restaurant arm after that part of the business under-performed in comparison to the hotel side.
Many of Whitbread’s pub-restaurants are located next to Premier Inn hotels, but have struggled with a lack of demand.
The food and beverage section of Whitbread – which includes Beefeater (pictured) and Brewers Fayre – have dropped two per cent in sales. File image
It was also reported last year that the business – which has 440 pub-restaurants in the UK – was considering selling Greene King, Heineken, Marston’s and Punch.
Whitbread, the UK’s largest hospitality business, added eleven new and extended hotels to its portfolio last year – totalling more than 1,500 new bedrooms.
The company currently employs more than 35,000 people in the UK and Ireland across its network of over 840 hotels.
