Whitbread to Close Last Beefeater and Brewers Fayre Restaurants
Premier Inn owner Whitbread has announced the closure of all remaining Beefeater and Brewers Fayre restaurants in the UK and Ireland, resulting in approximately 3,800 job losses. The move is part of a strategic reset driven by higher costs, tax increases, and pressure from a US activist investor.
The job cuts represent about 12% of Whitbread's 30,000-strong workforce in the UK and Ireland, primarily affecting staff at Beefeater and Brewers Fayre outlets typically located next to or inside Premier Inn hotels. The company stated that consultations with affected employees will begin immediately, and it expects to retain a 'significant proportion' of staff by offering alternative roles, given that it hires around 15,000 people annually.
Strategic Shift Amid Economic Pressures
The decision follows a review initiated in November 2025, a year after Whitbread first announced its five-year plan. The company has been grappling with higher costs stemming from Chancellor Rachel Reeves's 2025 budget, which Whitbread warned would add an extra £50 million in expenses this year due to changes in business rates calculation. This came on top of rising wage bills and food prices.
Whitbread, Britain's largest hotel operator with over 800 Premier Inn hotels, has been converting underperforming Beefeater and Brewers Fayre restaurants into hotel rooms. It now plans to extend this policy across the remaining 197 restaurants. The company will also sell and lease back £1.5 billion of its freehold properties to fund future growth, moving towards a model of leasing hotels rather than owning them outright.
Activist Investor Pressure
The FTSE 100 company has faced pressure from US activist investor Corvex, a New York-based hedge fund that disclosed a 6.05% stake in December 2025, making it Whitbread's second-biggest single shareholder. Corvex argued that Whitbread's share price undervalued its assets, including its UK leasehold property portfolio.
End of an Era for Iconic Brands
The closure marks the end of the Beefeater brand, established in 1974 and known for steaks and classic pub dishes, as well as the Brewers Fayre chain. Whitbread's new strategy will transform it into a pure hotel business, about seven years after it sold Costa Coffee to Coca-Cola for nearly £4 billion.
Whitbread reported flat revenues for the year to 26 February compared to the previous year. Its shares fell more than 3% on Thursday, making it one of the biggest decliners on the FTSE 100, with a 20% drop over the past six months.
