Whitbread restaurants

Whitbread has announced that it will cut about 3,800 jobs in the UK and Ireland and close its remaining Beefeater and Brewers Fayre restaurants by April 30, 2026. This move represents a significant shift towards becoming a pure hotel business.

Approximately 12% of Whitbread’s workforce of 30,000 will be affected by these job cuts. The company intends to convert all 197 of its remaining branded restaurants into hotel-based food and drink services, aligning with its focus on the Premier Inn brand.

The restructuring comes as Whitbread faces increased costs due to recent fiscal changes in the UK. The company reported flat revenues for the year ending February 26, compared to the previous year. Furthermore, Whitbread’s shares have fallen 20% over the past six months, indicating financial pressures.

In a bid to enhance profitability, Whitbread plans to sell and lease back £1.5 billion worth of its freehold properties. This strategy aims to cut net capital expenditure by more than £1 billion over the next five years.

The Beefeater brand has been part of Whitbread since its establishment in 1974. However, as consumer preferences shift towards hotel dining experiences, Whitbread is adapting its business model. Dominic Paul, the CEO, stated that they will create an integrated food and beverage offer preferred by hotel guests.

The Unite union has expressed concern over the job cuts, seeking consultations with Whitbread regarding the redundancies. Union representative Colenzo Jarrett-Thorpe criticized the company’s communication, stating it was disgraceful that employees learned about job losses through the media.

This restructuring follows a review initiated in November last year as part of Whitbread’s five-year plan. As it pivots away from casual dining to focus on hotels like Premier Inn, the hospitality sector may see further changes in response to evolving market demands.