Whitbread is closing its remaining 197 Beefeater and Brewers Fayre restaurants across the UK and Ireland, with about 3,800 jobs affected, roughly 12% of its workforce, as sites convert to Premier Inn integrated dining and extension rooms. Affected staff are owed collective consultation, statutory redundancy pay by age and service, and consideration for the roles Whitbread says it will offer.
TL;DR · LAST REVIEWED 26 JULY 2026
- All 197 remaining Beefeater and Brewers Fayre sites close as Whitbread becomes a hotel only business; about 3,800 roles affected
- Where 100 or more redundancies are proposed at one establishment, consultation must start at least 45 days before the first dismissal
- Statutory redundancy pay applies from two years' service: half a week's pay per year under 22, one week from 22 to 40, one and a half over 41, capped at 20 years
- Whitbread says it hires around 15,000 people a year and intends to retain a significant proportion of affected staff in alternative roles
- Refusing a suitable alternative role unreasonably can cost the redundancy payment; trialling one for four weeks does not
KEY FACTS
- Scale: about 3,800 roles, roughly 12% of Whitbread's 30,000 strong UK and Ireland workforce
- All 197 remaining branded restaurants convert to an integrated Premier Inn food and drink offer plus extension rooms
- Whitbread cited around £50 million of additional tax and business rates costs in 2026 and expects a £40 million adjusted profit reduction during the transition
- Collective consultation: at least 30 days before first dismissal for 20 to 99 proposed redundancies at one establishment, 45 days for 100 or more
- Statutory redundancy needs two years' continuous service; payments are tax free up to £30,000
- The Unite union has demanded consultation after staff learned of the cuts through the media
What is closing and why
Whitbread is completing the exit it began earlier: after selling 51 branded restaurants for £50 million, the remaining 197 Beefeater, Brewers Fayre and related sites close, converting to hotel integrated dining and additional Premier Inn rooms as the group becomes a pure hotel business.
The company points to around £50 million of extra tax and business rates costs in 2026 on top of rising wage and food bills, and accepts a £40 million reduction in adjusted profit before tax through the transition. The brands themselves, Beefeater dating to 1974, disappear entirely.
The closures land hardest on kitchen and front of house teams at sites attached to Premier Inns, where the replacement integrated offer will operate with smaller teams.
The consultation rights that apply first
Redundancies at this scale trigger collective consultation law: where an employer proposes 100 or more redundancies at one establishment, consultation with representatives must begin at least 45 days before the first dismissal takes effect, and 30 days where 20 to 99 are proposed.
Consultation must be genuine: ways of avoiding dismissals, reducing numbers and mitigating consequences all belong on the table, and a protective award of up to 90 days' pay per employee is the tribunal remedy where an employer fails to consult properly.
Individual consultation rights sit alongside: each employee is entitled to meetings about their own position, selection criteria where fewer than all roles go, and written reasons.
The money: statutory and beyond
Statutory redundancy pay applies from two years' continuous service: half a week's pay for each full year worked under age 22, a full week for years between 22 and 40, and one and a half weeks for years from 41, with service capped at 20 years and weekly pay capped at the statutory rate.
Redundancy payments are tax free up to £30,000, notice pay and holiday pay are taxed as normal earnings, and contractual redundancy schemes can only improve on the statutory floor, never undercut it.
Anyone unsure of their figure can run the GOV.UK redundancy calculator with their age, service and weekly pay; the arithmetic is mechanical once those three inputs are right.
Redeployment, and when refusing costs money
Whitbread says it hires around 15,000 people a year and intends to retain a significant proportion of affected staff, which makes the alternative role rules matter: unreasonably refusing a suitable alternative can forfeit the redundancy payment.
Suitability is judged on pay, status, location and hours against the old role, and every employee has the right to a four week trial period in an alternative role without losing redundancy rights if it proves unsuitable.
Practical sequence for affected staff: engage with consultation, get every offer in writing, use the trial period rather than refusing outright, and take union or ACAS advice before declining anything.
RELATED GUIDES
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
How many jobs are going at Beefeater and Brewers Fayre?
About 3,800 across the UK and Ireland, roughly 12% of Whitbread's 30,000 strong workforce, as all 197 remaining branded restaurants close and convert to Premier Inn integrated dining.
What consultation are affected workers owed?
With 100 or more redundancies proposed at an establishment, collective consultation must start at least 45 days before the first dismissal; failure risks protective awards of up to 90 days' pay per employee.
How much is statutory redundancy pay?
From two years' service: half a week's pay per year under 22, one week per year from 22 to 40, one and a half weeks per year from 41, capped at 20 years' service and the statutory weekly pay limit, tax free up to £30,000.
Will staff be offered other Whitbread jobs?
The company says it hires around 15,000 people annually and intends to retain a significant proportion of affected staff in alternative roles, with consultations under way.
Can refusing another role lose the redundancy payment?
Unreasonably refusing a suitable alternative can, which is why the four week statutory trial period exists: trying a role and finding it unsuitable preserves redundancy rights.
Are Premier Inn hotels closing too?
No: the restructuring converts restaurant space into hotel dining and additional rooms. It is the standalone restaurant brands that disappear.
SOURCES
- GOV.UK: Redundancy, your rights – accessed 26 July 2026
- GOV.UK: Making staff redundant – accessed 26 July 2026
- ACAS – accessed 26 July 2026
