Whitbread, the owner of Premier Inn, has announced the closure of all remaining Beefeater and Brewers Fayre restaurants in the UK and Ireland, resulting in approximately 3,800 job losses. The cuts represent about 12% of the company's 30,000-strong workforce in these regions. Consultations with affected employees will begin immediately.
The company said it expects to retain a 'significant proportion' of staff and will attempt to find alternative roles, given it hires around 15,000 people annually. The closures follow a strategic review prompted by higher costs from the 2025 budget and pressure from US activist investor Corvex, which holds a 6.05% stake in Whitbread.
Whitbread plans to convert the 197 branded restaurants into hotel rooms or integrated food and beverage offerings. It will also sell and lease back £1.5bn of freehold properties to fund future growth. Chief executive Dominic Paul said the move will 'unlock the addition of more highly profitable extension rooms'.
The Unite union criticised the company for not informing staff before the public announcement. National officer Colenzo Jarrett-Thorpe said: 'It is disgraceful that Whitbread employees heard about the job cuts through the media. Unite will be demanding full consultations.'
The closures mark the end of the Beefeater brand, established in 1974, and Brewers Fayre. Whitbread, which sold Costa Coffee in 2019, will become a pure hotel business. Shares fell over 3% on Thursday, extending a 20% decline over the past six months.
