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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Key facts:

• Whitbread plans to convert all remaining branded restaurants into an integrated food and beverage model.
• The company aims to save £250 million as part of its cost-saving measures.
• Whitbread intends to sell and lease back £1.5 billion of its freehold properties.

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.” This change aligns with the company’s new five-year business strategy. The Beefeater brand has been part of the UK dining landscape since 1974.

The Unite union is seeking consultations regarding the job cuts. Whitbread’s workforce in the UK and Ireland currently stands at around 30,000 employees. The closures will impact many families across the region.

Whitbread reported flat revenues for the year ending February 2026. However, it achieved a pre-tax profit of £298 million during the same period. Despite this profit, Whitbread’s shares have fallen 20% over the past six months, prompting a reevaluation of its operational model.

Paul added, “This plan will transform Whitbread into a higher-margin, higher-returning pure-play hotel business.” The company has faced pressure from investors such as Corvex to rethink its business strategy amid changing market conditions.

The next steps for Whitbread involve implementing this new strategy while managing the fallout from these closures. Officials have indicated that they will provide further updates as the transition progresses.

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