London: Whitbread, the owner of Premier Inn, has announced plans to cut up to 3,800 jobs across the UK and Ireland as part of a major restructuring of its restaurant operations. The proposed cuts could impact around 12.6 percent of its 30,000-strong workforce.
The decision forms part of a new five-year strategy aimed at reducing costs, with the company citing rising expenses, including higher business rates and increased employer National Insurance contributions, as key factors behind the move. Recent government changes have raised operating costs for many businesses, adding pressure on the hospitality sector.
Whitbread, which also operates restaurant brands such as Beefeater, Brewers Fayre, Bar and Block, Cookhouse and Pub, Thyme Bar and Grill, and Table Table, said that the review was also influenced by higher-than-expected inflation and significant increases in business rates. The company has additionally faced pressure from an activist investor to improve efficiency.
The planned job reductions remain subject to consultation, with the company stating it will attempt to redeploy affected employees into alternative roles where possible. It added that it expects to retain a significant proportion of impacted staff and noted that around 15,000 people are hired annually.
As part of the overhaul, Whitbread will transition its restaurant model to an integrated food and beverage offering within its hotels, aligning with changing customer preferences. This includes replacing its 197 standalone restaurants with hotel-based dining options. The company has already agreed to sell 51 branded restaurant sites and is in the process of finalising deals for an additional 60 locations.
Further changes include a plan to sell and lease back approximately £1.5 billion worth of property assets. Unlike many of its competitors, Whitbread owns around half of the hotels it operates, making this strategy a notable shift in its business model.
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