Whitbread is set to cut about 3,800 jobs in the UK and Ireland as it closes its remaining Beefeater and Brewers Fayre restaurants. This decision marks a significant shift towards becoming a pure hotel business.
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.
