Whitbread plans to close 261 restaurants in Premier Inn focus
The hotel group says it will exit branded restaurants, cut about 3,800 roles and redirect capital towards Premier Inn.
Whitbread plans to exit the restaurant business and become a pure-play hotel company focused on Premier Inn, putting 261 restaurants across brands including Beefeater, Brewers Fayre and Bar + Block under review for closure.
Bar + Block restaurants closed on 3 September, while Brewers Fayre locations are scheduled to close on 7 September. Whitbread operates Premier Inn alongside several restaurant brands, including Table Table, Whitbread Inns and Cookhouse + Pub.
The company said the strategy would reallocate capital towards its hotel business amid higher business rates and national insurance costs. Whitbread says the plan is intended to create a higher-margin, higher-returning hotel group.
About 600 additional Premier Inn rooms could be created through site conversions, with the remaining locations expected to be sold as going concerns. Fifty-three sites have reportedly been sold to Queensway Inns, which may relaunch them as “value pubs”.
The restaurant exit is forecast to cut 3,800 roles, reduce food-and-beverage sales by as much as £160 million and lower profits by £10 million, according to reported estimates. Whitbread also plans to sell £1.5 billion of freehold properties, reducing the share of owned properties in its portfolio from 50% to 30%.
The full closure timetable for all 261 restaurants has not been provided. The reported transfer of about 900 employees remains subject to completion of the sale and TUPE information and consultation processes.
