The parking lots outside dozens of well-known pub-restaurant buildings throughout Britain were already emptying differently by Monday morning. Something more permanent than the typical post-lunch lull. On September 7, Brewers Fayre closed all 89 of its restaurants in the United Kingdom. The remaining 106 Beefeater locations will follow on Thursday, September 10, three days later. All told, 195 restaurants were closed in a single week, bringing an end to nearly 50 years of history.
The closures were announced back in April by Whitbread, the parent company of both chains and the Premier Inn hotel group. Rather than being impulsive, the reasoning was calculated. Whitbread’s CEO, Dominic Paul, described it as a purposeful shift away from branded restaurant chains and toward what the company refers to as an “integrated food and beverage offer” centered around its hotel guests.
A few of the locations will be transformed into more Premier Inn rooms. It is anticipated that the remainder will be sold. Whitbread has stated that it plans to use the £1.5 billion freehold property portfolio alone to finance expansion in order to reach its goal of 96,000 hotel rooms by 2031.
It makes sense as a business argument. In light of the recent sharp increases in business rates and national insurance costs, hotels have higher profit margins than restaurants. Presumably, the numbers are correct. However, there’s something worth recognizing that the spreadsheets fall short of capturing when you watch it happen—the closed signs, the dining rooms going dark from Norfolk to Newport. Since 1974, Beefeater has been a part of the UK dining scene. In 1979, Brewers Fayre was established. They weren’t establishments of fine dining, but that was never the intention. Ordinary families would go there to commemorate everyday events.
This week’s comments from former clients have been instructive—not because they are upset, but rather because they are subtly sentimental. For family birthdays, one person claimed that Beefeater was the only restaurant they had ever gone to as a child, first for steak or a mixed grill and then for a Knickerbocker Glory. Another talked about a particular Bath branch they used to adore. Another person said that whenever family members returned to the area, they would automatically congregate there. All of this is true, but none of it is especially shocking. These chains filled a specific, unglamorous, and actually practical place in British society. Reasonably priced. predictable. dependable.
The two brands employ about 30,000 people. Whitbread, a hotel chain that employs about 15,000 people annually, has stated that it anticipates redeploying a sizable number through its current recruitment pipeline. Nevertheless, the business admitted that about 3,800 positions would probably be eliminated. This number is in line with other closures taking place on the British high street this month, including the closure of 100 Morrisons Daily stores and the withdrawal of brands like Quiz Clothing and Radley. The overall picture is one of persistent pressure on companies that deal with customers, with expenses increasing more quickly than foot traffic in many places.
There are other Whitbread-owned brands closing besides Beefeater and Brewers Fayre. This month, Bar + Block, Table Table, and Cookhouse + Pub will also close, bringing the total number of Whitbread restaurant closures in September to 261. In essence, the company is making a clean break from the food industry by putting all of its money into hotels.
It’s actually unclear if that wager will be profitable. Although competitors in some markets have found success with the integrated hotel dining model Whitbread is pursuing, scaling it successfully is a challenging task. Additionally, Whitbread is losing out on foot traffic, local loyalty, and community anchoring that restaurants offer in ways that hotel lobbies usually don’t, which raises an important question.
But the lights are off for the time being. There is less noise in the parking lots. It’s also likely that someone is wondering when they last placed an order for a mixed grill at their neighborhood Beefeater, which turns out to be the last time.
