Whitbread is closing its remaining Beefeater and Brewers Fayre restaurants, resulting in approximately 3,800 job losses. This marks a significant shift towards becoming a pure hotel business.
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.” The company aims to save £250 million as part of its cost-saving measures.
The Beefeater brand, established in 1974, has been a staple in the UK dining scene. However, Whitbread’s recent performance has prompted this drastic change. The company’s revenues for the year to February were flat compared to the previous year.
As of midday, reports indicate that Whitbread’s workforce in the UK and Ireland totals around 30,000. The Unite union is already seeking consultations regarding the job cuts.
Whitbread intends to sell and lease back £1.5 billion of its freehold properties as part of its new five-year business strategy. This plan aims to transform Whitbread into a higher-margin, higher-returning entity focused on hotels.
Colenzo Jarrett-Thorpe from Unite criticized the announcement: “It is disgraceful that Whitbread employees heard about the job cuts through the media.”
In recent months, Whitbread’s shares have fallen by 20%, reflecting investor concerns over its performance. The company reported a pre-tax profit of £298 million for the year ending February 26, 2026.
The next steps for affected employees remain uncertain as consultations proceed. Whitbread’s move signifies a pivotal moment in its strategy within the competitive hotel industry.
