(qlmbusinessnews.com Wed. 1st May, 2024) London, UK —
“Whitbread Announces 1,500 Job Cuts Amidst Restaurant Closure Strategy”
Whitbread, the parent company of Premier Inn, has announced its decision to cut 1,500 jobs amidst plans to shutter restaurants and focus on expanding its hotel business. The move involves reducing the number of branded restaurants by over 200 to pave the way for the construction of additional hotel rooms.
With a workforce of 37,000 employees in the UK, the job cuts, subject to consultation, will impact various restaurant brands owned by Whitbread, including Brewers Fayre and Beefeater. The company intends to offload 126 of its less profitable restaurants, with 21 sales agreements already in place. Additionally, it will close 112 restaurants and repurpose the space to accommodate new hotel rooms.
While the specific restaurants facing closure have not been disclosed yet, Whitbread's catering portfolio, which encompasses brands like Bar+Block, Thyme, and Cookhouse+Pub, will be affected across different locations rather than solely by brand.
Dominic Paul, Whitbread's CEO, acknowledged the difficulty of the decision, emphasizing the importance of handling the process sensitively for the impacted employees. He reiterated that the move was essential to support substantial investments in the business and the UK in the coming years.
The restructuring is part of a broader £150 million cost-saving initiative over three years. Whitbread aims to explore alternative opportunities for affected staff through internal job openings and external recruitment efforts.
Despite a 21% increase in pre-tax profit to £452 million for the year ending 29 February, Whitbread reported losses of £19 million from the 112 branded restaurants set for conversion and £9 million from the 126 restaurants earmarked for sale. These losses were attributed to reduced foot traffic from non-hotel guests.
Derren Nathan, head of equity research at Hargreaves Lansdown, noted that while Whitbread's hotel occupancy remained strong, the broader market for pubs and dining out experienced a decline in demand. He characterized Whitbread's strategic shift as a prudent move to pursue hotel expansion with less capital investment, leveraging conversions as a cost-effective means to fund growth initiatives.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
