Brewers Fayre, the flagship UK pub restaurant chain owned by Whitbread closed four outlets near Glasgow in July 2024. Those areas were Buchanan Gate, Stepps, Belziehill Farm in Belshill, Phoenix Park and Malt and Myre in Paisley and Dumbarton. It formed part of Whitbread’s wider push to streamline its portfolio towards higher margin entities. The closures of Brewers Fayre locations have impacted local communities.
Whitbread has witnessed a strategic shift in its operations.
Whitbread, which also owns Premier Inn hotels, launched an ‘Accelerating Growth Plan’ designed to improve profitability. It includes transforming 112 low-performing licensed restaurants into hotel rooms and disposing of 126 non-core venues. Whitbread had sold 21 of these restaurants, including some Brewers Fayre outlets, by April 2024 for a total sum of £28 million. The restructuring is aimed to lead to around £150 million worth of savings over the next three financial years.
Effect on Workers and Response From The Community
The closures raised fears about staff job losses. Whitbread said it aimed to keep as many staff as possible but did not provide exact numbers. The trade union Unite condemned the redundancy process, claiming some staff only discovered via the media that their jobs were at risk. Unite is now seeking maximum compensation for members who have lost their jobs and they are also contemplating classing the write-off as constructive dismissal.
Larger Trends Going Around in the Hospitality Sector
The hospitality industry has gone through immense struggles from the COVID-19 pandemic to increasing operational costs and evolving customer behavior. Consequently, this has caused numerous companies to take the time and rethink their business model. This is indicative of wider pressures facing the industry, culminating in Whitbread’s decision to close a number of its restaurants, including Brewers Fayre establishments, and focus more on expanding its hotel capacity.
An Overview Of iCafe Financial Figures
It’s remained a familiar face in the local hospitality scene as iCafe, the coffee house and internet café chain based in Glasgow. IcaFe, launched by entrepreneur Umer Ashraf in 2005, has since spread its wings to different locations across the city. Corporate Profile The Company has Achieved Industry Recognition for Youth Employment and Quality Service. According to its most recent financial statements as of June 2023, iCafe Limited’s total assets stood at approximately £195,390 and total shariah-compliant liabilities at the amount of around £304,960 meaning net assets equating to circa -£109,580. These numbers suggest those are not great financials, as assets are less than liabilities.
