Premier Inn’s parent company is contemplating the closure of two well-known restaurant chains in the UK, potentially leading to the disappearance of hundreds of locations from high streets nationwide.
Whitbread has revealed plans to potentially shut down all remaining Beefeater and Brewers Fayre restaurants, affecting nearly 200 establishments and resulting in 3,800 job cuts. This decision is part of a new five-year strategy aimed at achieving substantial cost savings amounting to a quarter of a billion pounds while revamping its restaurant operations. No final determinations regarding closures have been confirmed as of now, according to reports from the Mirror.
While most of the company’s 30,000 employees are expected to be retained, approximately 12 percent of the workforce across the affected locations could face layoffs.
These restaurants are typically situated adjacent to or within Premier Inn hotels, serving as popular dining spots for millions of visitors annually. The closures signify the end of an era for Beefeater restaurants after more than five decades in business, while Brewers Fayre was approaching its 50th anniversary in 2029.
Whitbread attributes the decision to budget constraints, citing significant cost escalations in business rates and National Insurance. The company’s CEO, Dominic Paul, emphasized the necessity of the move given these financial challenges. As part of the strategy, Whitbread plans to sell and lease back up to £1.5 billion worth of its freehold properties, with the proceeds being reinvested to support future growth initiatives. Paul outlined intentions to convert all remaining branded restaurants into an integrated food and beverage offering preferred by hotel guests, paving the way for additional revenue streams through extension rooms.
Paul expressed confidence that the company’s commercial strategies and operational efficiencies would reinforce its market position and enable it to gain a competitive edge over struggling rivals in the industry.
The proposed closures may impact the following Brewers Fayre restaurants:
The following Beefeater restaurants are also subject to the proposal:
