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Whitbread To Slash 1,500 UK Jobs As It Reduces Restaurant Chain

By Nithya Bose in Business News, posted April 30, 2024

Premier Inn owner Whitbread will cut around 1,500 UK jobs as it plans to build more hotels and reduce its chain of branded restaurants by over 200.

The decision comes as the company announces a 36 percent increase in annual profits to £561 million.

it has introduced an "accelerating growth plan" to focus on hotel investments.

The plan involves a consultation process to explore redeployment opportunities for affected employees.

Whitbread’s restaurant arm, which includes brands like Brewers Fayre and Beefeater, has hampered its performance post-pandemic.

The energy-led cost-of-living crisis compounded the challenges by raising costs and reducing consumer spending power.

Company will sell 126 restaurants and convert 112 more into new hotel rooms

Whitbread, which employs 37,000 staff in the UK, aims to optimise its food and drink offering, adding over 3,500 hotel rooms and enhancing "operational efficiencies."

The company intends to sell 126 less profitable branded restaurants and convert 112 restaurants into new hotel rooms.

21 sales have already been completed.

Whitbread's food and beverage arm saw a two percent drop in sales in the first seven weeks of the current financial year.

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The company aims to refocus on its hotel business and expand its UK market presence.

Dominic Paul, Whitbread's chief executive, acknowledged the impact of the transition on employees and pledged support throughout the process, striving to retain as many affected employees as possible.

Whitbread shares, falling nearly 15 percent year-to-date, rose 1.7 percent following the company's announcements.

Analysts attribute the market reaction to the company's strategic focus on profitable growth in its core UK market and the announcement of various awards.

It includes a £150 million share buyback and a £110 million final dividend, representing a 26 percent increase from the previous year's payout.

Whitbread's restructuring plan reflects its strategic shift toward hotel investments, balancing profit growth with employee support amidst changing market conditions.

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