Whitbread is calling time on 261 restaurants with the loss of 3,800 jobs, in the biggest mass-closure to hit UK hospitality since the Covid era.
The company confirmed this week that it will close all its restaurants under various brands, including 106 Beefeater steak houses and 89 Brewers Fayre family-friendly carveries, by 10 September as it pivots away from food and drink to concentrate on its Premier Inn hotels.
The move is part of a five-year plan designed to deliver savings of £250million for Whitbread, the former brewery which exited the beer industry 25 years ago. It launched Beefeater in 1974 and Brewers Fair in 1981; some of the closed venues will be converted into hotel rooms, while others will be sold as going concerns.
The announcement comes as industry figures led by Tom Kerridge have amped up their pressure on the government to reduce VAT on hospitality to 10%, saying the industry is under huge pressure and could lose thousands of jobs. Incoming Prime Minister Andy Burnham has responded by promising a 20% cut to business rates next year – but so far only to pubs, clubs and live music venues.
The Whitbread closures have not been forced by insolvency; instead, they represent a radical change of direction for a business. Richard Hunt, director of the Liquidation Centre, commented: “Closures of this scale inevitably have an impact on employees, local communities and loyal customers. They also serve as a reminder that even long-established household names cannot afford to stand still.”