Premier Inn owner Whitbread is set to make significant changes to its business operations, including the axing of around 1,500 UK jobs and the closure of more than 200 branded restaurants. The company, which reported a 36% increase in annual profits to £561m, is looking to focus more on its hotel arm, aiming to build more hotel rooms and optimize its food and drink offerings.
The decision to cut jobs is part of an “accelerating growth plan” that will see the company restructure its operations to improve efficiency and profitability. Whitbread hopes to minimize redundancies by redeploying some workers to other roles within the company.
The group’s restaurant division, which includes popular brands like Brewers Fayre and Beefeater, has been underperforming since the pandemic, leading to the need for these drastic measures. The company plans to sell off 126 of its less profitable branded restaurants and convert 112 restaurants into new hotel rooms.
Whitbread’s chief executive, Dominic Paul, emphasized the company’s commitment to supporting affected employees throughout the transition process. Despite the challenging times, Whitbread remains focused on achieving more profitable growth in its core UK market.
The company’s shares were down almost 15% year-to-date before the announcements, but rose by 1.7% at the open following the news. Analysts believe that Whitbread’s strategic changes, including a share buyback and increased dividends, reflect a positive outlook for the company’s future growth and profitability.