Beefeater brewers fayre job losses

Whitbread’s decision to close all Beefeater and Brewers Fayre restaurants marks a significant shift towards becoming a pure hotel business, impacting nearly 4,000 jobs across the UK and Ireland.

The company plans to cut about 3,800 jobs, which constitutes around 12% of its total workforce of 30,000. The closures will affect all of its remaining Beefeater and Brewers Fayre locations, totaling 197 restaurants. Some of these establishments will be converted into additional hotel rooms for Premier Inn.

This move comes as Whitbread faces mounting pressure from an activist investor to rethink its business strategy amid flat revenues for the year ending February 26. The company aims to recycle £1.5 billion to fund future growth while mitigating costs that have surged due to recent tax policies.

Key facts:

• About 3,800 jobs will be lost, affecting approximately 12% of Whitbread’s workforce.
• The Beefeater brand has been part of Whitbread since its establishment in 1974.
• 600 additional Premier Inn rooms are expected to be created through this transition.

Colenzo Jarrett-Thorpe from the Unite union expressed concern over the way the news broke: “It is disgraceful that Whitbread employees heard about the job cuts through the media.” In response, a Whitbread spokesperson stated, “We will do all we can to support those colleagues affected.” They also emphasized that a significant proportion of those impacted may still retain their positions within the company.

This drastic change aligns with Whitbread’s new five-year plan aimed at solidifying its focus on hotels rather than dining establishments. The company’s shares have dropped by about 20% over the past six months due to these ongoing challenges.