Whitbread is planning to sell or convert almost one-third of its Beefeater and Brewers Fayre pubs, The Times has reported.
The company, which hired advisors in 2023 to explore options for its 400-unit-strong food and beverage arm, is now putting 30 to 50 of its worst-performing sites on the market through Christie & Co.
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The decision follows the underperformance of the food and beverage division compared to Whitbread’s hotel business.
A potential sale to Platinum Equity, a Beverly Hills-based firm, fell through due to disagreements over price, City A.M. has reported.
Whitbread’s pub-restaurants are usually located adjacent to Premier Inn hotels and have faced challenges with demand.
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An additional 100 pubs and restaurants may be converted into extra hotel rooms for Premier Inns.
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By GlobalDataThe company is also considering options for the remaining 250 sites, though no final decision has been made.
The company’s annual report noted that despite an increase in hotel guests, its restaurants were trading below pre-pandemic levels of 4%.
The move signifies Whitbread’s strategic pivot away from its food and beverage brands to concentrate on expanding its hotel operations.
In early 2024 Whitbread exited its investment in the healthy café brand Pure, in which it had held a 49% share since 2016, re-inforcing the company’s core hotel business focus.
