Premier Inn owner announces 3,800 job cuts plan – 197 restaurants to be replaced | UK | News
Premier Inn owner Whitbread has announced plans to cut around 3,800 jobs in the UK and Ireland as part of a new five-year strategy to cut costs and overhaul its restaurants. The hotel giant said it would replace its remaining 197 branded restaurants with hotel-integrated food and beverage offerings, which it said were more efficient and preferred by hotel guests.
Whitbread said plans to reduce its 30,000-strong workforce were subject to employee consultation and it expected to retain a significant proportion of those affected through redeployment. The company also confirmed it plans to exit all remaining branded restaurant chains, including Beefeater and Brewers Fayre, to become a “pure play” hotel business focusing on Premier Inn. Some areas will be converted into approximately 600 new hotel rooms, while others are expected to be sold. The move comes as Whitbread struggles with rising costs after the UK’s last budget increased pressure on its finances and the company scrambles to maintain profits and increase margins.
A spokesman said: “Whitbread today announced that, as part of its proposed new Five Year Plan, it plans to become a pure hotel business focused on Premier Inn, the UK’s number one hotel brand, synonymous with quality and value.
“This change will involve exiting all our remaining branded restaurants trading under brands such as Beefeater and Brewers Fayre, some of which will be converted into approximately 600 additional Premier Inn rooms, with the remainder expected to be sold as a going concern.
“The proposed changes announced today build on the success of our Accelerated Growth Plan announced in 2024, which includes converting more than 200 branded restaurants into additional rooms and creating an integrated restaurant in every hotel.
“ This format has proven to be hugely popular with guests and, under the proposal, it will be rolled out to all hotels that currently have a branded restaurant.
“We recognize the impact this offer will have on our colleagues working in the affected areas. As a business that employs approximately 15,000 people each year, we expect to be able to retain a significant proportion of those affected and will seek to redeploy as many of our affected colleagues as possible.
“However, we estimate that the proposed changes, which are subject to consultation, will lead to a reduction in approximately 3,800 positions out of a total workforce of 30,000 in the UK and Ireland. We will do all we can to support colleagues affected.”
Whitbread is reportedly targeting £2bn of free cash flow by 2031 through major change, including recycling £1.5bn of property and reducing capital expenditure by over £1bn.
The move will reduce its ownership mix from around 50% to 30-40%, bringing it closer to rivals such as Hilton and Marriott International, which have less space.
Bosses have begun converting already underperforming restaurant spaces into hotel rooms in a bid to boost returns; The latest revision indicates that these efforts have greatly increased.
Chief Executive Dominic Paul said: “We are always challenging 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 intrinsic value, we have carefully considered the options open to us to maximize value creation over the medium to long term.
“This has been a challenging process and we have approached all options with an open mind. Our new five-year plan builds on our strengths and significantly accelerates our strategy.”
Whitbread said the move would reduce adjusted pre-tax profits this financial year by £10 million due to site transitions in the second half of FY27.
