Two UK pub restaurant chains are set to vanish from the high street as their parent company moves to overhaul its business in response to rising costs.
Whitbread, which owns both Beefeater and Brewers Fayre, is planning to close all 197 of its standalone restaurant sites, including the Bar + Block chain, which could effect 3,800 jobs.
The chains are typically located in close proximity to the company’s Premier Inn hotels.
Chief executive Dominic Paul said the decision followed “significant cost increases”, which includes higher employer National Insurance contributions and business rates.
The restructuring forms part of a five-year plan aimed at reducing costs and reshaping the company’s operations.
Whitbread reported a 19% fall in profits to £298 million, and said it expects to save around £250 million through the changes.
As part of the plan, around 110 sites will be sold, while other locations will be converted into hotel space, creating an estimated 600 additional rooms.
It marks the end of an era for the steak and pub chains which have been popular with families across the UK.
Whitbread, which employs around 30,000 people, said the proposed job cuts remain subject to consultation, adding that it hopes to redeploy some staff into new roles within the business.
Shares in the company fell sharply following the announcement, dropping to their lowest level since the pandemic as investors reacted to the restructuring plans.
A previous cost-cutting programme launched in 2024 led to about 1,500 job losses.
Despite the changes, Whitbread said it remains on track to expand its hotel capacity, aiming for 96,000 rooms by the 2031 financial year, up from roughly 86,600.
Mr 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.”
He added: “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.”