Whitbread is to carve up Beefeater and sell-off 140 other restaurant sites as part of its long-awaited restaurant division revamp, it announced today.
Whitbread also today reported major growth in its core hotels, restaurants and leisure businesses. Sales across the three divisions û now known collectively as Future Whitbread û grew 22% in the six months to September 2. Pre-exceptional EBITDA increased 31% to £180m, with operating profits were 30% ahead at £124.8m.
The group - which during the year has sold-off its brewing and off-licence businesses and has now put its pubs and bars division up for sale - said its plans to reorganise its restaurant operations would see Brewsters, its new family orientated concept for the Brewers Fayre estate, growing to 220 units. Costa Coffee will expand to 500 sites. The Beefeater estate will be mainly rebranded.
Whitbread, however, has stopped short of heavy surgery on lesser brands such as Café Rouge and Bella Pasta, although it announced plans to prune back 140 existing sites, selling off 10% of its total restaurant estate. These will include 50 high street units, mainly Café Rouges.
The restaurant division saw half-year sales grow 8.0% to £563m. Like-for-like sales were up 2.2%, leaving EBITDA 7.4% ahead at £93m and operating profit 8.2% up at
£65.7m
As announced earlier, around 90% of operating profit for the division was generated by two brands - Brewers Fayre and Beefeater including their adjacent Travel Inns. Brewers Fayre grew like-for-like sales by 4.6% and Beefeater by 0.9%, during the period.
Like-for-likes in Costa were ahead by 9.4% and Pizza Hut by 5.2% with Whitbread Restaurants Germany also ahead by 1.1%.
Like-for-likes in high street restaurants, including Cafe Rouge and Bella Pasta, were down by 0.9% and TGI Friday's down by 6.1%.
Whitbread's restaurant will see its 258-strong Beefeater estate being segmented, with the creation of two new brands. Approximately 80 sites will become Out and Out destination restaurants with another 90 "in prime locations" also being reworked. The remaining sites will be switched to other concepts or retained as Beefeaters.
After the site sales, the remaining high street brands, along with T.G.I. Friday's, will benefit from "new initiatives and more focused attention", promises the company. Early results in Bella Pasta and Cafe Rouge are encouraging, it says. A new franchising strategy is to be adopted at Pizza Hut to meet the growing demand for home delivery.
• The biggest growth for the group as whole came from hotels, which was boosted by the acquisition of Swallow and the continued rapid roll-out of Travel Inn. Half year sales grew + 71% to £218.6m. Like-for-likes were up 9.8%. Operating profit grew 85% to £46m.
The David Lloyd leisure division saw sales up 45% to
£66.6m. Like-for-likes grew 5.2%. Operating profit was up 26% at
£13.1m.
• The Pubs and Bars business, now on the market, saw half year sales up 3.5% at £341.3m. Like-for-likes were flat. EBITDA was3.0% ahead at
£104m. Operating profit grew 2.2% to
£88m
+ 2.2%
Sales in leased pubs were up 2.3%, with profit ahead by 7.1%, while managed pubs achieved sales growth of 3.8% with a marginal decline in profit. Like-for-like sales in the three main business streams were:
High Street bars including Hogshead (+2.7%), Pub Partnerships (+2.3%) and Pubs Inn-Line (-0.6%).
• The interim results also underlined the dramatic effect of the sale of its alcohol-led businesses on the size of the group. Whitbread will have shrunk by half when pubs and bars are sold. Across the whole group, including old businesses, six months sales fell 1.9% to £1.77bn. Operating profit was up 5.8% at £231.4m, while pre-tax profit, before exceptionals, fell 5.9% to £182.1m.
• SeeWhitbread ready to reveal restaurant revamp
Whitbread also today reported major growth in its core hotels, restaurants and leisure businesses. Sales across the three divisions û now known collectively as Future Whitbread û grew 22% in the six months to September 2. Pre-exceptional EBITDA increased 31% to £180m, with operating profits were 30% ahead at £124.8m.
The group - which during the year has sold-off its brewing and off-licence businesses and has now put its pubs and bars division up for sale - said its plans to reorganise its restaurant operations would see Brewsters, its new family orientated concept for the Brewers Fayre estate, growing to 220 units. Costa Coffee will expand to 500 sites. The Beefeater estate will be mainly rebranded.
Whitbread, however, has stopped short of heavy surgery on lesser brands such as Café Rouge and Bella Pasta, although it announced plans to prune back 140 existing sites, selling off 10% of its total restaurant estate. These will include 50 high street units, mainly Café Rouges.
The restaurant division saw half-year sales grow 8.0% to £563m. Like-for-like sales were up 2.2%, leaving EBITDA 7.4% ahead at £93m and operating profit 8.2% up at
£65.7m
As announced earlier, around 90% of operating profit for the division was generated by two brands - Brewers Fayre and Beefeater including their adjacent Travel Inns. Brewers Fayre grew like-for-like sales by 4.6% and Beefeater by 0.9%, during the period.
Like-for-likes in Costa were ahead by 9.4% and Pizza Hut by 5.2% with Whitbread Restaurants Germany also ahead by 1.1%.
Like-for-likes in high street restaurants, including Cafe Rouge and Bella Pasta, were down by 0.9% and TGI Friday's down by 6.1%.
Whitbread's restaurant will see its 258-strong Beefeater estate being segmented, with the creation of two new brands. Approximately 80 sites will become Out and Out destination restaurants with another 90 "in prime locations" also being reworked. The remaining sites will be switched to other concepts or retained as Beefeaters.
After the site sales, the remaining high street brands, along with T.G.I. Friday's, will benefit from "new initiatives and more focused attention", promises the company. Early results in Bella Pasta and Cafe Rouge are encouraging, it says. A new franchising strategy is to be adopted at Pizza Hut to meet the growing demand for home delivery.
• The biggest growth for the group as whole came from hotels, which was boosted by the acquisition of Swallow and the continued rapid roll-out of Travel Inn. Half year sales grew + 71% to £218.6m. Like-for-likes were up 9.8%. Operating profit grew 85% to £46m.
The David Lloyd leisure division saw sales up 45% to
£66.6m. Like-for-likes grew 5.2%. Operating profit was up 26% at
£13.1m.
• The Pubs and Bars business, now on the market, saw half year sales up 3.5% at £341.3m. Like-for-likes were flat. EBITDA was3.0% ahead at
£104m. Operating profit grew 2.2% to
£88m
+ 2.2%
Sales in leased pubs were up 2.3%, with profit ahead by 7.1%, while managed pubs achieved sales growth of 3.8% with a marginal decline in profit. Like-for-like sales in the three main business streams were:
High Street bars including Hogshead (+2.7%), Pub Partnerships (+2.3%) and Pubs Inn-Line (-0.6%).
• The interim results also underlined the dramatic effect of the sale of its alcohol-led businesses on the size of the group. Whitbread will have shrunk by half when pubs and bars are sold. Across the whole group, including old businesses, six months sales fell 1.9% to £1.77bn. Operating profit was up 5.8% at £231.4m, while pre-tax profit, before exceptionals, fell 5.9% to £182.1m.
• SeeWhitbread ready to reveal restaurant revamp
