Whitbread could lose some famous restaurant brands once it sells its 3,000 pubs. David Richardson, strategic planning director, claims brands such as Pizza Hut and TGI Fridays could be axed if plans to resuscitate margins and performance fail. Neither brand is owned by Whitbread but operated under joint-venture or franchise deals.
However, Sir John Banham, chairman, believes that Pizza Hut, Bella Pasta and Costa all have the potential to make it into the major league even though they are not among the five big brands on which Future Whitbread plans to focus. But he admitted that some of the brands would not make it.
The company plans to segment the Beefeater estate following a similar successful strategy with Brewsters, the new family-oriented sub brand within the 387-strong Brewers Fayre chain.
Brewers Fayre has average weekly sales of £20,000 - around 120 of its outlets operate as Brewsters. Beefeater, with 258 outlets, has average weekly sales of £22,000.
Whitbread reported estimated interim figures, to be confirmed on October 31, showing Brewers Fayre and Beefeater - two of the five major brands on which the company will now focus - accounted for around 90% of restaurant division profit (EBIT), including their adjacent Travel Inns.
The total restaurant division is estimated to have generated profits (EBITDA) of about £93m on sales of about £563m and like-for-like sales growth of 2.2%, Brewers Fayre is estimated to have grown like-for-like sales by 4.6%.
The restaurants portfolio also includes Bella Pasta, Cafe Rouge, Costa Coffee, Maredo in Germany, Pizza Hut and TGI Friday's. Costa Coffee and Pizza Hut, had shown good like-for-like sales growth, said the company, although rumours persist that Costa may be on the market. Increased focus is expected on Café Rouge, whose performance has been disappointing.
Future Whitbread operating divisions are estimated to have grown interim sales by 22%, profits (EBITDA) by 31% with overall like-for-like sales up 3.8%. Total pre-tax profits excluding exceptional items is expected to be not less than £181m.
SeeWhitbread to quit pubs Whitbread to quit pubs
However, Sir John Banham, chairman, believes that Pizza Hut, Bella Pasta and Costa all have the potential to make it into the major league even though they are not among the five big brands on which Future Whitbread plans to focus. But he admitted that some of the brands would not make it.
The company plans to segment the Beefeater estate following a similar successful strategy with Brewsters, the new family-oriented sub brand within the 387-strong Brewers Fayre chain.
Brewers Fayre has average weekly sales of £20,000 - around 120 of its outlets operate as Brewsters. Beefeater, with 258 outlets, has average weekly sales of £22,000.
Whitbread reported estimated interim figures, to be confirmed on October 31, showing Brewers Fayre and Beefeater - two of the five major brands on which the company will now focus - accounted for around 90% of restaurant division profit (EBIT), including their adjacent Travel Inns.
The total restaurant division is estimated to have generated profits (EBITDA) of about £93m on sales of about £563m and like-for-like sales growth of 2.2%, Brewers Fayre is estimated to have grown like-for-like sales by 4.6%.
The restaurants portfolio also includes Bella Pasta, Cafe Rouge, Costa Coffee, Maredo in Germany, Pizza Hut and TGI Friday's. Costa Coffee and Pizza Hut, had shown good like-for-like sales growth, said the company, although rumours persist that Costa may be on the market. Increased focus is expected on Café Rouge, whose performance has been disappointing.
Future Whitbread operating divisions are estimated to have grown interim sales by 22%, profits (EBITDA) by 31% with overall like-for-like sales up 3.8%. Total pre-tax profits excluding exceptional items is expected to be not less than £181m.
SeeWhitbread to quit pubs Whitbread to quit pubs
