Gloucester Restaurants to Close Amid Rising Business Costs

Three popular restaurants in Gloucestershire are preparing to shut their doors following Whitbread’s announcement to discontinue its Brewers Fayre and Beefeater chains. The hotel and hospitality giant, known for owning Premier Inn, attributed the decision to escalating operational costs driven by government policy.

Whitbread revealed plans to close 200 restaurants across the UK and Ireland, leading to approximately 3,800 job losses. Within the South West region, 21 establishments are slated for closure, including locations in Devon, Cornwall, Somerset, and four in Bristol.

Specifically in Gloucestershire, the affected restaurants are the Old Nelson Brewers Fayre in Stroud, the Whittle Inn Brewers Fayre in Gloucester, and the Twelve Bells Beefeater, also in Gloucester.

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This large-scale downsizing aligns with Whitbread’s new five-year strategy aimed at cutting costs by £250 million while transforming its dining offerings. Despite retaining the bulk of its 30,000 employees, about 12% of workers at the closing sites will face layoffs.

Brewers Fayre and Beefeater have long been fixtures beside Premier Inn hotels, serving millions of visitors annually. The impending closures mark the end of Beefeater’s more than 50-year presence in the market, with Brewers Fayre’s 50th anniversary coming up in 2029.

Whitbread’s Chief Executive, Dominic Paul, cited Chancellor Rachel Reeves’ budget as a catalyst for the closures, citing “significant cost increases in business rates and National Insurance.” The company plans to sell and lease back up to £1.5 billion worth of freehold properties, reinvesting the proceeds to fuel future growth.

“We will convert our remaining branded restaurants into integrated food and beverage outlets preferred by hotel guests, enhancing profitability and enabling the addition of more hotel rooms,” Paul explained. “Our continued efforts will strengthen our market position and allow us to capture market share from competitors challenged by similar cost pressures.”

The South West will see multiple Brewers Fayre and Beefeater restaurants close, underscoring the significant impact on local hospitality venues as Whitbread reshapes its portfolio.

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