Whitbread Sells 51 Restaurants for £56 Million

Whitbread, the parent company of Premier Inn, has completed the sale of 51 restaurants for a total of £56 million. This move is a critical part of Whitbread’s broader cost-cutting and restructuring strategy aimed at streamlining its operations and focusing on more profitable ventures, particularly its Premier Inn hotel brand.

Earlier this year, Whitbread announced its plans to divest 126 underperforming Beefeater and Brewers Fayre locations. As part of this initiative, the company also revealed that it would convert 112 of these restaurants into additional hotel rooms to support the continued growth of Premier Inn.

The sale of these 51 restaurant sites marks a significant milestone in Whitbread’s efforts to improve efficiency and boost profitability. The hospitality sector, particularly food and beverage, has faced declining demand, with Whitbread reporting a slowdown in business and leisure travel compared to the previous year’s post-pandemic surge.

Despite maintaining a total revenue of £1.57 billion for the six-month period ending August 29, Whitbread’s pre-tax profits fell by 22%, prompting the company to expand its cost-reduction measures. These include targeting £50 million in annual savings as part of a long-term plan to bolster its financial performance through 2030. Additionally, the industry faces looming uncertainties such as potential increases in employer taxes, which could further impact profitability.

Looking ahead, Whitbread remains committed to expanding its Premier Inn brand. The company plans to grow its room count from the current 86,000 to 125,000 across the UK and Ireland. Moreover, Whitbread sees significant growth opportunities in the German market, which is approximately 40% larger than the UK hotel market.

By divesting underperforming restaurants and reinvesting in its core hotel operations, Whitbread is positioning itself for sustained growth and profitability in the evolving hospitality landscape.