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Whitbread is to cut approximately 3,800 roles across its UK operations as part of a restructuring of its food and beverage division.
The company announced the reductions alongside a new five-year plan intended to increase margins and shareholder returns by 2031.
The job cuts are subject to employee consultation and follow a decision to convert or sell the group’s remaining 197 branded restaurants.
Whitbread intends to replace these sites with integrated hotel restaurants and additional guest rooms.
For the financial year ending 26 February 2026, the group reported adjusted profit before tax of £483m, unchanged from the previous year.
Statutory profit before tax fell 19% to £298m, impacted by £185m in adjusting items including impairments related to its growth plan.
Total statutory revenue remained flat at £2.92bn. While accommodation sales in the UK and Germany rose by 1.9% and 9.0%, these gains were offset by lower food and beverage revenues.
The German business reached a milestone by reporting its first annual profit of £2m.
The group intends to reduce its net capital investment by more than £1bn by 2031 and recycle £1.5bn of its property assets.
The board has recommended a final dividend of 60.6p per share, maintaining the total dividend for the year at 97.0p.
Guidance for the 2027 financial year indicates that the restaurant transition will reduce food and beverage sales by between £140m and £160m.
Whitbread also expects a net reduction of £10m to adjusted profit before tax during this period as it exits branded sites.
In Germany, the group expects an increase in adjusted profit of approximately £10m before one-off costs. The company also anticipates gross inflation in the UK to reach between 6.5% and 7.5% on its £1.7bn cost base.
Dominic Paul, chief executive, said: “We’ve already made great progress in the transformation of Whitbread, despite external headwinds, and I’m excited by what’s coming next. This plan will transform Whitbread into a higher-margin, higher-returning pure-play hotel business.”
