Beefeater and Brewers Fayre restaurants in Sussex are set to close permanently within days as owner Whitbread exits the branded restaurant business.
Brewers Fayre locations will close on Monday, September 7, while Beefeater restaurants will shut on Thursday, September 10, the company has confirmed.
The move affects four sites across Sussex: Crossbush Beefeater in Arundel, White Hart Beefeater in Hastings, The Windmill Brewers Fayre in Hastings, and The Drove Brewers Fayre in Newhaven.
Exit from restaurants
Whitbread, which also owns Premier Inn, announced in April that it planned to become a pure hotel business. The plan included exiting all of its remaining branded restaurants — 197 sites trading under names such as Beefeater, Table Table and Brewers Fayre.
Some of the sites will be converted into around 600 additional Premier Inn rooms, with the remainder expected to be sold as going concerns. Whitbread also plans to sell off around £1.5 billion worth of freehold properties to fund further expansion, as part of a restructuring designed to achieve £250 million in cost savings.
Dominic Paul, chief executive of Whitbread, 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."
He added: "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. 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."
The closures are part of Whitbread's broader five-year growth strategy, which also includes shutting down Bar + Block, Table Table, and Cookhouse + Pub locations.
Impact on staff
The restructuring puts around 3,800 jobs at risk across the UK. Whitbread has said it will try to redeploy affected staff within the business but acknowledged that significant job losses are expected.
A spokesman for Whitbread said: "We recognise the impact of this proposal on colleagues who work at the affected sites. As a business which recruits around 15,000 people every year, we expect to be able to retain a significant proportion of those affected and will be looking to redeploy as many of our impacted colleagues as possible."
The spokesman added: "However, we do anticipate that the proposed changes, which are subject to consultation, would result in a reduction of around 3,800 roles of a total UK and Ireland workforce of around 30,000. We will do all we can to support those colleagues affected."
Sale to Queensway Inns
Whitbread has reached a conditional agreement to sell 53 branded restaurant sites to Queensway Inns, which plans to relaunch them as affordable pubs under a new brand. The deal is subject to final approvals, and if completed, around 900 staff members could transfer to the new owner.
A spokesman for Whitbread said: "Whitbread has reached an agreement for the conditional sale of 53 branded restaurant sites to Queensway Inns, subject to a number of final conditions being met. Queensway Inns has extensive experience operating hospitality businesses across the UK and intends to operate the sites as going concerns. Subject to completion of the sale and following the relevant TUPE information and consultation processes, around 900 team members could transfer and will be supported through the process."
The White Hart Beefeater in Hastings may be among the locations set to be saved through this sale, according to reports. Queensway Inns has not yet announced the new brand name, menu pricing, or expected reopening dates for the acquired sites.
Loyalty scheme ends
The closures have also affected the brands' loyalty programmes. Diners had until Monday, August 24 to earn additional points through the brands' loyalty scheme, with customers given one week to redeem their vouchers before they expired on Monday, August 31.
The Beefeater Grill Reward Club allowed diners to collect points on food and drink purchases, with every £1 spent earning five points. Rewards could be redeemed starting at 500 points, including £5 food vouchers, free starters, desserts, or bottles of wine.
North Wales sites also closing
Similar closures are taking place in North Wales, where Whitbread operates a Brewers Fayre restaurant near the Black Cat roundabout at Glan Conwy. That site will shut after dinner service on September 7.
Table Table sites in Caernarfon, Rhuddlan and at Parc Menai in Bangor are closing on Thursday, September 3, with Beefeater sites in the region set to shut on September 10.