Two Brewers Fayre Restaurants in North East Lincolnshire Face Closure

Whitbread plans to close or convert 126 underperforming hospitality venues, including 112 branded restaurants, over the next two years. The move may affect 1,500 jobs across the UK, including those at two Brewers Fayre restaurants in North East Lincolnshire.

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Aqsa Younas Rana
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Two Brewers Fayre Restaurants in North East Lincolnshire Face Closure

Two Brewers Fayre Restaurants in North East Lincolnshire Face Closure

Two Brewers Fayre restaurants in North East Lincolnshire, The Haven in Grimsby and Cleethorpes, may close as part of Premier Inn owner Whitbread's plan to replace 112 branded restaurants over the next two years. The move could potentially affect 1,500 jobs across the UK.

Why this matters: This closure plan highlights the struggles of the hospitality industry in the UK, which could have a ripple effect on local economies and employment rates. The impact of such closures could also be felt by consumers who rely on these establishments for dining and socializing.

Whitbread announced its intention to close or convert 126 of its less profitable hospitality venues, including the 112 restaurants, although the company stated the job cuts are still subject to consultation. The affected venues will remain open as usual until they are sold or converted.

Chief Executive Dominic Paul acknowledged the impact on employees, saying, "We recognise that our transition will impact some of our team members, so we will be providing support throughout this process and we are committed to working hard to enable as many as possible of those affected to remain with us."

Despite Whitbread announcing a pre-tax profit of £452 million for the year ending February 29, up 21% from the previous year, its restaurants and pubs division lagged behind. Food and beverage sales were up only 7% year on year. The cost-cutting programme is expected to save around £150 million over the next three years.

Once the transition is complete, Whitbread will be left with 387 restaurants that are part of its hotels and 196 branded restaurants. The company has already completed 21 sales as part of its plan to sell 126 less profitable venues over the next two years.

The potential closure of The Haven in Grimsby and Cleethorpes highlights the challenging economic climate facing the hospitality industry. As Whitbread moves forward with its cost-cutting measures, the fate of these local Brewers Fayre restaurants and the jobs they provide hangs in the balance.

Key Takeaways

  • Whitbread to close/convert 126 less profitable venues, including 112 restaurants, over 2 years.
  • 1,500 UK jobs potentially affected, with support promised for impacted employees.
  • Move aims to save £150m over 3 years, despite 21% pre-tax profit increase.
  • Two Brewers Fayre restaurants in North East Lincolnshire may close as part of plan.
  • Whitbread to be left with 387 hotel restaurants and 196 branded restaurants after transition.