Whitbread has announced plans to close a restaurant in Chadderton, as part of national cuts to the business.
The Whitegate Inn Beefeater, in Broadway on the site of the Premier Inn, is one of the 200 restaurants reportedly being cut by the chain, with Brewers Fayre also affected.
It is expected to hit 3,800 jobs across the UK and Ireland, affecting around 12 per cent of its 30,000-strong workforce.
Whitbread said it expects to retain a "significant proportion" of affected workers and will attempt to redeploy staff into other roles.
The company plans to convert its remaining 197 branded restaurants into hotel space or integrated food and beverage offers for guests, as part of a major shift in strategy.
Dominic Paul, Whitbread’s chief executive, said: "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."
FTSE 100 data showed the company’s shares ended 6.3 per cent lower following the strategic review.
Whitbread said the decision follows rising costs, including tax changes announced in Rachel Reeves’s 2025 budget, which it warned would add £50m to its annual costs. The business has also faced pressure from higher wages and food prices.
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The move will see the long-established Beefeater brand, founded in 1974, and Brewers Fayre disappear from the UK hospitality landscape as Whitbread becomes a hotel-focused business.
Whitbread said revenues for the year to February 2026 were flat, while its share price has fallen by around 20 per cent over the past six months.
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