As detailed by Whitbread earlier this year, the plans will see more than 100 pub sites next to Premier Inn hotels closed, converted into additional hotel rooms or adapted into restaurants for hotel guests only, including the agreed sale of 21 venues, generating £28m.
While the business, which operates a number of brands including Premier Inn and Brewers Fayre, affirmed it still planned to close a number of sites and reduce its workforce as part of the strategic plan, it assured it was committed to supporting staff members through the changes.
Following the news, CAMRA shared its “utter dismay” and the organisations chief executive Tom Stainer has written to Whitbread urging the board to reconsider the decision, claiming it highlights “inconsistencies between the company’s stated values and its actions”.
Stainer wrote: “I would ask you to carefully reflect on whether the actions you have put in train align with your previous commitments, and your outlined values. I would argue that they do not.
Increased demand
“Closing a pub – which is a community amenity facility and gathering space – to the local community that it serves is not only contrary to the aims of your environmental, social and governance strategy, it will also impact upon your ability to maintain you are a ‘trusted brand’.”
Whitbread explained while its UK hotel arm had gone from “strength-to-strength”, the performance of some of its branded restaurants had been impacted by a reduction in footfall from non-hotel guests and “struggled to meet targeted levels of return”.
In addition, the group said the initiative would add 3,500 new hotel rooms to Premier Inn’s UK pipeline and evolve its food and beverage offer to meet the “increased demand” from hotel guests and deliver a better experience”.
As part of its latest annual trading update, Whitbread reported a 13% rise in sales and a 36% increase in adjusted profit before tax to £561m.
The construction of the new integrated restaurants is set to commence shortly, with the first new rooms extensions expected to be available to guests by the end of the current financial year and the remaining sites completed over the next few years.
However, CAMRA also shared “concerns” for the construction of the conversions with regards to Class E in the planning system.
Planning protections
CAMRA’s national panning policy adviser Paul Ainsworth added: “Concerningly, it appears most of these pubs have been closed to the public under the argument they are restaurants, and worryingly most local authorities have accepted that.
“We are now campaigning for a legal definition of a pub for planning purposes so that if you can buy a drink at the bar without purchasing a meal, the venue would be considered a pub.
“In the wake of scandals such as the scandalous Crooked House demolition, unacceptably high levels of unlawful conversions and demolitions, and now this, we need the new Government to act now to strengthen planning protections and enforcement options for local councils.”
Though Whitbread chief executive officer Dominic Paul asserted the plans were a “positive” step for the business and would extend its “market leadership and strong performance” in the UK.
He continued: “I recognise these changes will be unsettling for affected team members and we are committed to working hard to enable as many as possible of those affected to stay with Whitbread by either transferring into roles this plan will create, or by taking up other vacancies across the business.
“Our teams are at the heart of our guest experience, and I want to thank each and every team member for their continued hard work and dedication to deliver the great quality, service and value that our guests expect from us.”
