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.
As of early Tuesday, the company confirmed that these closures will affect approximately 12% of its 30,000-strong workforce. Whitbread plans to convert all 197 branded restaurants into hotel-based food and drink services.
The restructuring follows a review initiated in November 2025. Whitbread’s revenues for the year ending February 26 were flat compared to the previous year. The company has seen its shares fall by 20% over the past six months.
Key aspects of Whitbread’s new strategy:
- The company intends to sell and lease back £1.5 billion of its freehold properties.
- It aims to cut net capital expenditure by more than £1 billion over the next five years.
- This move aligns with increased costs linked to recent fiscal changes in the UK.
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 and will unlock the addition of more highly profitable extension rooms.” However, this announcement has drawn criticism.
Colenzo Jarrett-Thorpe from the Unite union expressed outrage, saying, “It is disgraceful that Whitbread employees heard about the job cuts through the media. The company did not even have the decency to let its staff know first.” The union is seeking consultations regarding these proposed redundancies.
This strategic shift reflects Whitbread’s commitment to focus on its Premier Inn brand, which includes more than 800 hotels across the UK. The Beefeater brand has been part of Whitbread since 1974, making this change particularly notable in the hospitality sector.
The next steps for Whitbread involve implementing these changes swiftly as it navigates a challenging economic landscape.