Whitbread, the owner of Premier Inn, has announced the closure of its Beefeater and Brewers Fayre restaurant chains, resulting in 3,800 job losses. The company reported annual losses of £1bn and a sales drop of over 70% due to the pandemic, which it described as the 'most challenging in our 279 year history'.
Despite the closures, Whitbread expects a surge in UK holiday demand from mid-May as Covid restrictions ease. The firm forecasts 'a significant bounce in leisure demand in our tourist locations' and plans to invest £350m this year, partly in refurbishments and advertising featuring Sir Lenny Henry.
Almost all of its 800 UK and Ireland hotels (92%) are now open, compared to just 39 during the first lockdown. Recent lockdowns saw occupancy at 23% in January and 29% in February. The company received £270m in government support, including furlough, and employed 30,000 staff, with 27,000 furloughed.
Whitbread aims to cut £100m in costs and has scrapped dividends, while directors took pay cuts. Chief executive Alison Brittain said: 'The vaccination programme means we can look forward to the planned relaxation of restrictions, with the first major milestone being the return of leisure guests from 17 May.'
Julie Palmer of Begbies Traynor commented: 'Whitbread has been rocked by the pandemic. It can get back on its feet, but the Whitbread we saw before could be different after.'
