News: Changes on the way at popular Rotherham pub restaurant
The future of a pub restaurant in Rotherham is unclear after its owners carried out a wide ranging review of its business.
The Brecks in Rotherham is part of Whitbread's Beefeater portfolio and is connected to Premier Inn Rotherham East, part of the UK's biggest hotel brand that is also owned by Whitbread.
Having undertaken a review, bosses at the leading hospitality business are putting in place a refocused growth plan in the UK to replace all remaining branded restaurants.
Expanding its "Accelerating Growth Plan" will see 197 branded restaurants replaced "with a more efficient and tailored F&B [Food & Beverage] offering for our guests."
The company said it had seen positive early results two years into the original plan to optimise the delivery of F&B at a number of sites by converting lower returning branded restaurants into a higher margin and more efficient, integrated F&B offering, and converting space into new hotel rooms.
Whitbread added that it had already agreed the sale of 51 branded restaurants for £50m and agreed terms for the sale, subject to conditions, on a further 60 sites.
The sales are expected to be as going concerns over the next 24 months with the investment into creating more efficient integrated restaurants set to take place in the 2027 financial year.
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An update from Whitbread said: "Moving to a 100% integrated F&B offering will improve the guest experience and add more higher returning extension rooms and we will deliver 15% - 20% returns on capital by FY31 [the 2031 financial year].
"With over 500 integrated restaurants already operational across our UK estate, it is clear that this F&B format is preferred by our hotel guests and delivers better margins and returns than the branded restaurant format."
Dominic Paul, Chief Executive at Whitbread plc, said: "Owning a significant proportion of our property is a unique strength which powers the growth of Premier Inn while supporting our resilience as a business, underpinned by a strong balance sheet. But we can improve our approach. We will refocus our capital spend and recycle more of our freehold real estate, driving increased margins and returns, reducing our capital intensity and increasing cash returns for shareholders.
"By making our assets work harder and focusing on the highest returning projects, we will be able to continue to take advantage of constrained supply to strengthen our position in both of our core markets, whilst at the same time deliver attractive financial outcomes for shareholders.
"In the UK, by reallocating some of our capital spend and building on the success of our Accelerating Growth Plan, we plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms. Our continued efforts to drive our commercial plan and efficiencies will extend our market-leading position and allow us to take share from our competitors, many of which are struggling to grow."
The Premier Inn on East Bawtry Road secured planning permission last year for a 4,800 sq ft two storey extension to the east of the current hotel. It would provide an additional 16 bedrooms but two current rooms would be lost to create a new corridor. It would take the total rooms at the site from 62 to 76.
The update from Whitbread added: "Against a backdrop of limited UK supply growth, we will open a further 3,000 higher returning extension rooms (including the original plan and the extension of the plan) that are being added in locations where we know from our trading data that, at certain periods, demand outstrips supply and so we are confident that these additional rooms will deliver highly attractive financial returns."
Whitbread website
Images: Google Maps
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The Brecks in Rotherham is part of Whitbread's Beefeater portfolio and is connected to Premier Inn Rotherham East, part of the UK's biggest hotel brand that is also owned by Whitbread.
Having undertaken a review, bosses at the leading hospitality business are putting in place a refocused growth plan in the UK to replace all remaining branded restaurants.
Expanding its "Accelerating Growth Plan" will see 197 branded restaurants replaced "with a more efficient and tailored F&B [Food & Beverage] offering for our guests."
The company said it had seen positive early results two years into the original plan to optimise the delivery of F&B at a number of sites by converting lower returning branded restaurants into a higher margin and more efficient, integrated F&B offering, and converting space into new hotel rooms.
Whitbread added that it had already agreed the sale of 51 branded restaurants for £50m and agreed terms for the sale, subject to conditions, on a further 60 sites.
The sales are expected to be as going concerns over the next 24 months with the investment into creating more efficient integrated restaurants set to take place in the 2027 financial year.
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An update from Whitbread said: "Moving to a 100% integrated F&B offering will improve the guest experience and add more higher returning extension rooms and we will deliver 15% - 20% returns on capital by FY31 [the 2031 financial year].
"With over 500 integrated restaurants already operational across our UK estate, it is clear that this F&B format is preferred by our hotel guests and delivers better margins and returns than the branded restaurant format."
Dominic Paul, Chief Executive at Whitbread plc, said: "Owning a significant proportion of our property is a unique strength which powers the growth of Premier Inn while supporting our resilience as a business, underpinned by a strong balance sheet. But we can improve our approach. We will refocus our capital spend and recycle more of our freehold real estate, driving increased margins and returns, reducing our capital intensity and increasing cash returns for shareholders.
"By making our assets work harder and focusing on the highest returning projects, we will be able to continue to take advantage of constrained supply to strengthen our position in both of our core markets, whilst at the same time deliver attractive financial outcomes for shareholders.
"In the UK, by reallocating some of our capital spend and building on the success of our Accelerating Growth Plan, we plan to convert all our remaining branded restaurants to an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms. Our continued efforts to drive our commercial plan and efficiencies will extend our market-leading position and allow us to take share from our competitors, many of which are struggling to grow."
The Premier Inn on East Bawtry Road secured planning permission last year for a 4,800 sq ft two storey extension to the east of the current hotel. It would provide an additional 16 bedrooms but two current rooms would be lost to create a new corridor. It would take the total rooms at the site from 62 to 76.
The update from Whitbread added: "Against a backdrop of limited UK supply growth, we will open a further 3,000 higher returning extension rooms (including the original plan and the extension of the plan) that are being added in locations where we know from our trading data that, at certain periods, demand outstrips supply and so we are confident that these additional rooms will deliver highly attractive financial returns."
Whitbread website
Images: Google Maps











