Whitbread, the operator of Premier Inn, has announced plans to cut approximately 1,500 jobs, which will result in the closure of some of its branded restaurants across the UK. The move is part of a company-wide initiative to shift focus onto its hotel business by reducing the number of restaurants and increasing the number of hotel rooms. The plan is to cut more than 200 branded restaurants, with 126 of those less profitable outlets to be sold. Another 112 restaurants will be closed and converted into hotel rooms.
Whitbread stated the new strategy will create over 3,500 hotel rooms across the company as it looks to leverage the backbone of its business: its hotel brand, Premier Inn. Whitbread declared that, subject to consultation, the job cuts impacting a workforce of roughly 37,000 individuals, will come from its restaurant brands, including Beefeater and Brewers Fayre. Approximately 196 branded restaurants and just under 400 restaurants, which are unbranded and part of the hotel, will remain open.
Despite the job reductions, Whitbread has made efforts to assure employees that it is committed to supporting those affected. Further, it stated that it intends to look for other job vacancies across the firm where possible. In a statement released by the company, CEO Dominic Paul remarked: “We recognise that our transition will impact some of our team members so we will be providing support throughout this process and we are committed to working hard to enable as many as possible of those affected to remain with us.”
Whitbread’s new move follows pre-tax profits of £452m, representing an increase of 21%, for the year ended 29th February. The losses posted for the 112 branded restaurants were £19m, while those for the 126 for sale were £9m. Fewer visits by non-hotel guests were the blame for the downturn of the restaurant business.
Whitbread has identified the need to adapt its business and capitalise on the growth in the domestic “staycation” sector where travellers are increasingly opting to stay within the UK rather than travel abroad. The company recognises the need to be agile and to respond to the continuously evolving market conditions and ever-changing consumer behaviour
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