Whitbread plans to cut about 3,800 jobs, affecting approximately 12% of its 30,000-strong workforce. The company intends to shut its remaining 197 Beefeater and Brewers Fayre locations. Some of these restaurants will be converted into additional hotel rooms.

The changes are part of Whitbread’s new five-year plan. The company has faced pressure from an activist investor to rethink its business strategy. Whitbread’s revenues for the year ending February 26 were flat compared to the previous year.

Key facts:

• About 3,800 jobs will be lost due to the closures.
• The company expects to retain a significant proportion of affected staff.
• 600 additional Premier Inn rooms will be created from the converted restaurants.

The Unite union is seeking consultations with Whitbread over these proposed redundancies. Colenzo Jarrett-Thorpe, a union representative, criticized the way employees learned about the job cuts through the media.

A Whitbread spokesperson stated, “We will do all we can to support those colleagues affected.” They added that this change involves exiting all remaining branded restaurants in favor of focusing on hotel operations.

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The company plans to convert all 197 of its branded restaurants into hotel-based food and drink services. The closures will affect around 12% of Whitbread’s workforce of 30,000.

Whitbread’s restructuring is part of a broader strategy aimed at maximizing value amid rising costs linked to recent fiscal changes in the UK. The company also plans to sell and lease back £1.5 billion of its freehold properties. Whitbread has more than 800 Premier Inn hotels across the UK.

This change comes after Whitbread’s revenues for the year ending February were flat compared to the previous year. Additionally, shares have fallen by 20% over the past six months.

The Unite union has expressed concern over the job cuts. They are seeking consultations with Whitbread regarding the proposed redundancies. Union representative Colenzo Jarrett-Thorpe criticized the company for communicating these cuts through media rather than directly informing staff.

Dominic Paul, CEO of Whitbread, stated, “We plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests.” He emphasized that this move will unlock more profitable extension rooms.

This decision follows a review of Whitbread’s business strategy initiated in November 2025. The company aims to adapt to changing market conditions while focusing on its core hotel operations.

The hospitality sector continues to face challenges, but Whitbread’s pivot indicates a significant realignment in their business model moving forward.

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