Two major UK pub chains, Beefeater and Brewers Fayre, are set to disappear from the high street, resulting in the loss of 3,800 jobs across the UK and Ireland. All 197 standalone restaurant sites, including those in Birmingham, along with the Bar + Block chain, will be shut down.
Whitbread, the owner of both brands along with Premier Inn, confirmed the news. The chains are typically located near Premier Inn hotels, but the parent company is overhauling its business due to rising costs as part of a five-year plan to cut costs and restructure.
Whitbread reported a 19% fall in profits to £298 million. Around 110 sites will be sold, while other locations will be converted into hotel space, creating an estimated 600 additional rooms. However, Whitbread remains on track to expand its hotel capacity, aiming for 96,000 rooms by 2031, up from roughly 86,600.
Chief executive Dominic Paul said: "We always challenge ourselves to improve and, in light of significant cost increases in the form of business rates and national insurance, as well as the implied market discount to our inherent value, we've looked hard at the options open to us to maximise value creation over the medium and long-term. This has been a rigorous process and we've approached all options with an open mind. Our new five-year plan builds on our strengths and drives a significant acceleration of our strategy. This plan will transform Whitbread into a higher-margin, higher-returning pure-play hotel business. We're going to go further and faster to deliver a great experience for our guests and high-quality growth and returns for our shareholders."
A previous cost-cutting programme launched in 2024 led to about 1,500 job losses.
