Whitbread announces the closure of Beefeater and Brewers Fayre restaurants, affecting 3,800 jobs as part of a strategic business shift

Whitbread, the owner of Premier Inn, has announced plans to close its remaining Beefeater and Brewers Fayre restaurants in the UK and Ireland, leading to the loss of 3,800 jobs. This move comes as part of the company’s strategic reset following higher taxes and mounting pressure from a US activist investor. The closures will impact approximately 12% of Whitbread’s workforce in the region, which currently stands at 30,000 employees.

The decision follows a review of Whitbread’s business strategy, which began in November 2025, after the company experienced the financial strain of increased operating costs. Whitbread also noted the impact of tax rises and changes to business rates, which are expected to cost the company an additional £50 million in 2026. This comes on top of already rising wage bills and food prices.

As part of its new direction, Whitbread plans to convert some of its underperforming restaurants into hotel rooms, continuing the trend of converting Beefeater and Brewers Fayre locations into Premier Inn rooms. The company has also made plans to sell and lease back £1.5 billion worth of its properties in a bid to fund future growth. Whitbread hopes that by focusing entirely on hotels, it can further solidify its position as the UK’s largest hotel operator.

Dominic Paul, Whitbread’s chief executive, explained, “We plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms.” The company aims to enhance its competitiveness in the hospitality market, which has become increasingly challenging amid rising costs and fierce competition.

Despite these changes, Whitbread has assured affected staff that it will retain a “significant proportion” of its workforce, offering them alternative roles within the company. Whitbread hires approximately 15,000 people annually, and efforts are underway to find positions for the displaced employees.

The announcement has not been without controversy. The Unite union has criticized Whitbread for failing to inform workers of the job cuts before the media. “It is disgraceful that Whitbread employees heard about the job cuts through the media,” said Colenzo Jarrett-Thorpe, the union’s national officer. He emphasized that the union would demand consultations with the company to ensure that the affected workers receive proper support.

The closures mark the end of an era for Beefeater and Brewers Fayre, two well-known chains in the UK dining landscape. Beefeater, founded in 1974, became famous for serving steaks and classic pub dishes, filling a gap in the UK’s limited dining options at the time. Now, as Whitbread shifts its focus entirely to its hotel business, these restaurant brands will fade into history.

The changes come amid a challenging economic environment for the hospitality industry, with rising costs and labor shortages continuing to pose significant challenges. Whitbread’s decision reflects a broader trend in the industry of adapting to changing consumer preferences and the pressures of higher operating costs.

In addition to its domestic struggles, Whitbread has also faced pressure from American hedge fund Corvex, which has taken a 6.05% stake in the company. The activist investor has criticized Whitbread’s business strategy and called for changes to unlock more value, including reevaluating its assets.

Whitbread’s stock price has been under pressure, with shares falling by more than 3% after the announcement, and a 20% drop over the last six months. Despite these setbacks, the company remains focused on its hotel business as it looks to navigate a challenging future in the hospitality industry.