Whitbread to exit branded restaurant operations in new five-year plan: Whitbread is to exit its branded restaurant operation spelling the end of Beefeater and Brewers Fayre as it unveiled a new five-year plan “to drive a significant increase in both margins and returns that will fund substantial cash returns for shareholders”. The new plan includes selling 110 of the remaining 197 branded restaurants with the rest being converted into hotel rooms, leading to the loss of nearly 4,000 jobs. The company stated: “We are now two years into our plan to optimise the delivery of food and beverage at a number of our sites by converting some of our lower returning branded restaurants into a higher margin and more efficient, integrated food and beverage offering, while at the same time unlocking higher returning new extension rooms. Given the positive early results from sites that are now complete and having concluded the sale of 51 branded restaurants for £50m, with a further 60 sites where we have agreed terms of sale subject to conditions, we are now proposing to reallocate capital and extend the previous plan to include all the group’s remaining 197 branded restaurants. In FY26, these sites generated food and beverage revenue of £284m but incurred a site level adjusted loss before tax of £13m, plus associated central overheads of £10m. In FY27, the extension of the accelerated growth plan to include all remaining 197 branded restaurants will reduce total food and beverage sales by £140m-£160m as we transition to our new integrated format and exit those sites marketed for sale. There will be a £40m reduction in profits as we transition the remaining branded restaurants, which will more than offset positive progress from our original accelerated growth plan, resulting in a net £10m reduction to profits. The extension of the accelerating growth plan has three key elements: the replacement of all remaining 197 lower returning branded restaurants with a new, higher margin and more efficient integrated restaurant, unlocking additional higher returning extension rooms; the sale of 110 of these branded restaurants which we intend to sell as going concerns over the next 24 months; and simplification of the group’s operating model and supporting infrastructure to reflect the shift to a pure-play hotel business with a uniform and fully integrated food and beverage offering. With more than 500 integrated restaurants already operational across our UK estate, it is clear this food and beverage format is preferred by our hotel guests and delivers better margins and returns than the branded restaurant format. Drawing upon our learnings from having already completed and opened circa 600 extension rooms under the plan, we are highly confident that once complete, our fully integrated offer will continue to deliver high guest scores and deliver a significant uplift in financial performance. At the same time and against a backdrop of limited UK supply growth, we will open a further 3,000 higher returning extension rooms (including the original plan and the extension of the plan) that are being added in locations where we know from our trading data that, at certain periods, demand outstrips supply and so we are confident that these additional rooms will deliver highly attractive financial returns.” For the eight weeks to 23 April 2026, Whitbread said food and beverage sales were 4.2% lower than the previous year, “reflecting the exit from a number of lower-returning branded restaurants, mitigated by a positive performance from our integrated restaurants”. Total accommodation sales and revpar were up 1.9% and 0.9% respectively versus the previous year, “outperforming the market, with a particularly strong performance in London”. It comes as Whitbread reported total statutory revenue for the year ending 26 February 2026 was flat at £2.92bn. Adjusted profit before tax was also flat at £483m. UK food and beverage sales fell 8%, “which was slightly better than expected due to the timing of branded restaurant disposals”. Premier Inn UK total accommodation sales and revpar both increased by 1%, reflecting a return to market growth from the second quarter. Premier Inn Germany saw total sales grow 13% and delivered its first profit in the country with adjusted profit before tax of £2m (2025: £11m loss). Chief executive Dominic Paul said: “In the UK, we made excellent progress on each of our strategic initiatives and Premier Inn again outperformed the wider market, supported by the strength of our customer offer and the benefits of our commercial programme. This was a breakthrough year for Germany, delivering our first annual profit – a major milestone for the group. Our new five-year plan is a significant step for the group. While the proposed extension of the accelerating growth plan will impact profits in FY27, our new plan will make our assets work harder while creating a stronger, higher-returning business that delivers for our guests, teams and shareholders.”