Whitbread to sell remaining branded restaurants

Premier Inn operator Whitbread has announced it is to exit its remaining branded restaurant operations, which signals the end of its brands Beefeater and Brewers Fayre. 

In its preliminary financial results for the 52 weeks to 26 February 2026, Whitbread revealed a new five-year plan, which involves selling 110 of its remaining 197 branded restaurants, with the rest set to be converted into hotel rooms.

The business says it is extending its 'Accelerating Growth Plan' (AGP) to drive improved margins and stronger UK returns.

"Following early positive results from completed sites and having agreed the sale of 51 branded restaurants for £50m and agreed terms for the sale, subject to conditions, on a further 60 sites, we are reallocating capital to extend our plan to replace all of the group's remaining 197 branded restaurants with a more efficient integrated restaurant," the business says in a statement. "Moving to a 100% integrated F&B offering will improve the guest experience and add more higher returning extension rooms and we will deliver 15% - 20% returns on capital by FY31."

It has been widely reported that the decision will results in the loss of nearly 4,000 jobs.

Group results

Whitbread's group statutory revenue was flat year-on-year at £2,920m, which it says reflects a recovery in UK accommodation sales from the second quarter and positive momentum in Germany, offset by lower F&B revenues as a result of the AGP.

Adjusted EBITDAR increased to £1,074m (FY25: £1,030m), while adjusted profit before tax was £483m (FY25: £483m) and statutory profit before tax was £298m (FY25: £368m).

"For over 280 years, Whitbread's success has been driven by continually evolving to meet the needs of our guests," says Dominic Paul, chief executive of Whitbread. "Today our business is built around a world-class brand in Premier Inn, which is synonymous with great quality and value, and has an unrivalled market position in the UK as well as a hugely exciting opportunity in Germany.

"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 conclusion is that our model is the right one. Owning a significant proportion of our property is a unique strength which powers the growth of Premier Inn while supporting our resilience as a business, underpinned by a strong balance sheet. But we can improve our approach. We will refocus our capital spend and recycle more of our freehold real estate, driving increased margins and returns, reducing our capital intensity and increasing cash returns for shareholders. By making our assets work harder and focusing on the highest returning projects, we will be able to continue to take advantage of constrained supply to strengthen our position in both of our core markets, whilst at the same time deliver attractive financial outcomes for shareholders.

"In the UK, by reallocating some of our capital spend and building on the success of our Accelerating Growth Plan, we plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms. Our continued efforts to drive our commercial plan and efficiencies will extend our market-leading position and allow us to take share from our competitors, many of which are struggling to grow."

You may also be interested in…