Premier Inn owner Whitbread has announced plans to cut approximately 3,800 jobs in the UK and Ireland as part of a new five-year strategy aimed at making £250 million in cost savings and overhauling its restaurant operations.
The hospitality group stated that it seeks to reduce expenses in response to cost pressures stemming from business rates and national insurance contributions. Its five-year plan includes an increased cost-saving target and measures to cut capital spending by more than £1 billion.
Under the plan, Whitbread will replace its 197 restaurants with an integrated food and drink model, which the company says is more efficient and preferred by hotel guests. The proposed job reductions, which affect its 30,000-strong workforce, are subject to employee consultation, and the company expects to retain a significant proportion of affected staff through redeployment.
Chief executive Dominic Paul commented: "We always challenge ourselves to improve and, in light of significant cost increases in the form of business rates and national insurance, as well as the implied market discount to our inherent value, we’ve looked hard at the options open to us to maximise value creation over the medium and long-term. This has been a rigorous process and we’ve approached all options with an open mind. Our new five-year plan builds on our strengths and drives a significant acceleration of our strategy."
Whitbread's overhaul reflects broader pressures in the hospitality sector, with rising costs and changing consumer preferences prompting companies to adapt their business models. The integrated food and drink model is expected to streamline operations and enhance the guest experience, while the cost-saving measures aim to bolster the company's financial resilience.
