Premier Inn to Close Beefeater and Brewers Fayre Restaurants, Cutting 3,800 Jobs

Premier Inn's parent company, Whitbread, has announced the closure of its remaining Beefeater and Brewers Fayre restaurant chains, shutting nearly 200 locations and cutting 3,800 jobs across the UK and Ireland. The move is part of a new five-year strategy aimed at achieving £250 million in cost savings while overhauling its food and beverage offerings.

Impact of the Closures

The closures will see approximately 12 percent of Whitbread's 30,000-strong workforce laid off. The restaurants, typically located next to or inside Premier Inn hotels, have been a staple for millions of visitors annually. Beefeater will cease operations after more than 50 years in business, while Brewers Fayre would have celebrated its 50th anniversary in 2029.

Reasons Behind the Decision

Whitbread's chief executive, Dominic Paul, blamed the decision on significant cost increases from Rachel Reeves' budget, including higher business rates and National Insurance contributions. The company plans to sell and lease back up to £1.5 billion of its freehold properties to fund future growth.

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Paul stated: "We plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms." He added that the strategy would help Whitbread extend its market-leading position and take share from struggling competitors.