Whitbread to cut 250 management jobs in restaurant business

Whitbread is set to cull 250 management roles from its restaurants business in a bid to make the company more “efficient and effective”.

It is understood that the decision has not been prompted by the company’s decision to demerge from Costa, which was announced in April. The decision to make the coffee chain a separate entity from Premier Inn and Beefeater was prompted by pressure from Whitbread’s investors.

The split is expected to happen within two years and will allow shareholders to invest in “two distinct, focused and market-leading businesses” and encourage the two companies to “strengthen the foundations for long-term profitable growth”.

Regarding the management roles, the company said it would be “consulting directly with the individuals impacted” and seek to find them alternative roles where possible.

A Whitbread spokesperson told Catering Today: “We’re proposing to simplify the management teams in our restaurants’ business, which will bring our structure in line with industry norms. By doing so we will create a more efficient and effective organisation, and ensure we continue to deliver our ambitious growth plans. Regrettably however, the proposed changes would result in a number of managers leaving the business.

“Over the next year, our Premier Inn and Restaurants’ business will create 1700 new jobs across the UK by investing around £300m in dozens of new hotel and restaurant openings.”