Whitbread

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This article is about the company. For other uses, see Whitbread (disambiguation).
Whitbread PLC
Public limited company
Traded as LSEWTB
Industry Leisure
Hospitality
Founded 1742 (London)
Founder Samuel Whitbread and Thomas Shewell
Headquarters Dunstable, United Kingdom
Area served
China, Dubai, Europe, India, Republic of Ireland, Russia, United Kingdom
Key people
Richard Baker (Chairman)
Andy Harrison (CEO)
Revenue £2,294.3 million (2014)[1]
£391.5 million (2014)[1]
£323.4 million (2014)[1]
Number of employees
approx. 40,000 (2014)[2]
Divisions Beefeater Grill
Brewers Fayre
Costa Coffee
Premier Inn
Table Table
Taybarns
Website www.whitbread.co.uk

Whitbread PLC is a multinational hotel, coffee shop and restaurant company headquartered in Dunstable, United Kingdom. Its largest division is Premier Inn, which is the largest hotel brand in the UK with around 650 hotels and over 50,000 rooms. Its Costa Coffee chain has 2,861 shops across 30 countries as of May 2014 and is the world's second-largest international coffee shop chain.[3] Its other brands include the restaurant chains Beefeater Grill, Brewers Fayre, Table Table and Taybarns.[2]

Whitbread is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History[edit]

The Chiswell Street brewery in 1792.

In 1742 Samuel Whitbread formed a partnership with Godfrey and Thomas Shewell and they acquired a small brewery at the junction of Old Street and Upper Whitecross Street and another brewhouse for pale and amber beers in Brick Lane, Spitalfields.[4] Godfrey Shewell withdrew from the partnership as Thomas Shewell and Samuel Whitbread bought the large site of the derelict King's Head brewery in Chiswell Street in 1750.[4] The new brewery was for the production of porter, and was renamed the Hind Brewery after the Whitbread family coat of arms.[4] From the outset, Whitbread was the leading financial partner, and solely responsible for management, and in 1761, Whitbread acquired Shewell's share of the business for £30,000.[4] It was the largest brewery in the world by the 1780s.[5] In 1796 the company produced 202,000 barrels of porter.[4]

The firm struggled after the death of Samuel Whitbread Sr, and saw ownership transfer to his son, also called Samuel Whitbread.[5]

The company adopted the name Whitbread & Co Ltd in 1799.[6]

The company was first listed on the London Stock Exchange in 1948.[5] Between 1961 and 1971, Whitbread's output increased from 2.1 to 7.4 million hectolitres and it became Britain's third-largest brewer by output.[7]

Whitbread acquired a 20% stake in TVS for £6.5M from European ferries in April 1984.[8]

Whitbread Group Plc decided in 2001 to sell all its breweries and brewing interests (Whitbread Beer Company) to Interbrew, now known as InBev.[6] Whitbread-branded alcoholic beverages are still available in the UK, such as canned Whitbread bitter, but these are not produced by InBev, merely produced under licence by other producers. InBev controls the use of the Whitbread brand, and the hind's head logo, for use on beverages. In 2002 Whitbread sold its pub estate, known as the Laurel Pub Company, to Enterprise Inns.[9]

The Whitbread & Co brewery building at 52 Chiswell Street in London still survives, although beer ceased to be brewed there in 1976[5] and it is now a conference and events venue. Still named "The Brewery", it is now part of the Earls Court and Olympia Group, as the site itself was sold to an investment firm in 2005.[10]

In 2005, it moved its core operations from CityPoint in central London, to Oakley House in Luton,[11] and then, in 2006, to larger offices at Whitbread Court in Dunstable (previously used by the now defunct Whitbread Restaurants Company) in a bid to reduce costs.

In 2006, it went on to sell 239 of its 271 Beefeater sites to Mitchells & Butlers.[12] In January 2010, Whitbread introduced a new corporate logo, and replaced the tagline "welcome with a smile" with "Eat, Sleep and Drink".[13]

February 2013 Horse meat scandal[edit]

In 2013, as part of the 2013 meat adulteration scandal DNA tests revealed that horsemeat was present in some meat products sold in outlets owned by Whitbread.[14]

Ready packed meal firm Findus, Compass Group was the world's biggest catering firm at the time, and Whitbread, which was at the time Britain's biggest hotel group was indicted for illegally selling concealed horse meat in food products.[15]

In a public letter later that day, 11 firms, including Tesco and Asda, said they shared shoppers' "anger and outrage".[16] Whitbread vowed to remedy the unacceptable situation on 26 February 2013.[17] The Food Standards Agency's (FSA) chief executive, Catherine Brown also said "it is unlikely we will ever know" how many unwittingly ate horsemeat.[18]

Current operations[edit]

Whitbread's principal current operations are:

Premier Inn[edit]

Main article: Premier Inn

Premier Inn is the UK's largest budget hotel chain, with over 650 hotels.[19]

Costa Coffee[edit]

A branch of Costa in Sutton, Greater London
A branch of Costa Coffee in Liverpool, England
Main article: Costa Coffee

Costa Coffee was founded in London in 1971 by the brothers Sergio and Bruno Costa as a wholesale operation supplying roasted coffee to caterers and specialist Italian coffee shops. Acquired by Whitbread in 1995, it has since grown to over 2,861 stores across 30 countries.[20] By the end of 2010, the company had overtaken Starbucks in the UK, reaching a 37.6% market share measured by revenues.[21] The business has 1,755 UK restaurants, over 3,500 Costa Express vending facilities and a further 1,106 outlets overseas.[3]

Table Table[edit]

Main article: Table Table

Table Table is a UK restaurant brand. They started as converted Brewers Fayre restaurants, next to a Premier Inn. The brand was originally set up in autumn 2006 as an unnamed brand. The name Table Table was launched in May 2008. There are around 105 sites in the UK.[22]

Beefeater Grill[edit]

Main article: Beefeater Grill

Beefeater was launched in 1974 and serves millions of guests each year. The chain underwent a huge revamp in the early 2000s. It has just finished another refurbishment programme renaming the brand Beefeater Grill. Beefeater Grill has 140 houses across the UK.[23]

Brewers Fayre[edit]

Main article: Brewers Fayre

Brewers Fayre is a pub-restaurant brand. The pubs are designed to look and feel like traditional local pubs but with a particularly strong family presence. There are around 145 pubs across the country.[24]

Whitbread Inns[edit]

Whitbread Inn's is a new brand of restaurants created by Whitbread in 2014. At present there are five pubs in the south of England (all of which were Table Table).[25]

Taybarns[edit]

Main article: Taybarns

Taybarns is an all-you-can-eat American buffet-style restaurant. There are six sites in England and one (the very first site at Swansea) in Wales.[26]

Former operations[edit]

Whitbread's former operations include:

  • Britvic, a large UK manufacturer of soft drinks, producing brands such as J2O, Robinson's and Tango as well as Pepsi in the UK and Ireland.[27]
  • Marriott hotels and clubs in the UK, sold to brand owner Marriott Corporation.[28]
  • TGI Friday's - Whitbread originally held the UK franchise rights to the American restaurant chain TGI Friday's. The restaurants are known for their "over the top" American style and are popular with teenagers for birthday parties. It is also noted for its cocktails including a top-selling Long Island Iced Tea. On 17 January 2007 Whitbread announced that the franchise rights for TGI Friday's were being sold to a joint venture between Carlson Restaurants Worldwide Inc and ABN AMRO Capital for £70.4m.[29]
  • Pizza Hut UK, sold to brand owner Yum!.[30]
  • David Lloyd Leisure - Whitbread ran more than 50 David Lloyd Leisure (DLL) clubs in the UK and Ireland with a further number in Spain, the Netherlands and Belgium. DLL is Britain's biggest tennis operator and manages more than 500 tennis courts. On 4 July 2007, Whitbread announced that it had conditionally agreed to sell the David Lloyd Leisure chain to Versailles Bidco Limited for £925 million. Whitbread will initially use the proceeds from its sale to pay off debt.[31]
  • Hogshead, a group of town-centre pubs, similar to Wetherspoons, became part of the Laurel Pub Company in 2001.[32]
  • Threshers, a chain of off licences.[33]
  • Germany: Churasco, owned since 1990, and Maredo, owned since 1994; in 1999 the Churasco restaurants have been transformed into Maredo branded ones; Maredo has been sold in 2005[34]

References[edit]

  1. ^ a b c "Annual Report 2014" (PDF). Whitbread PLC. Retrieved 21 March 2015. 
  2. ^ a b "About us". Whitbread PLC. Retrieved 1 July 2013. 
  3. ^ a b "Annual Report 2014" (PDF). Retrieved 31 January 2015. 
  4. ^ a b c d e "Whitbread, Samuel". Oxford Dictionary of National Biography. Retrieved 31 January 2015. 
  5. ^ a b c d Jack S. Blocker; David M. Fahey; Ian R. Tyrrell (2003). Alcohol and Temperance in Modern History: An International Encyclopedia. ABC-CLIO. pp. 656–657. ISBN 978-1-57607-833-4. 
  6. ^ a b "History of Whitbread". Whitbread.co.uk. Retrieved 2014-04-11. 
  7. ^ "Alcohol and Temperance in Modern History". google.com. Retrieved 1 February 2015. 
  8. ^ Whitbread buys £6m TVS stake. By Derek Harris Commercial Editor. The Times, Thursday, Apr 12, 1984; pg. 18
  9. ^ Enterprise Inns buys 1,860 pubs to become UK's top landlord[dead link]
  10. ^ Whitbread sells historic brewery[dead link]
  11. ^ "Whitbread - market intelligence". Ukbusinesspark.co.uk. Retrieved 2014-04-11. 
  12. ^ "Business | Beefeater sites bought by M&B". BBC News. 2006-07-21. Retrieved 2014-04-11. 
  13. ^ "Whitbread Case Study" (PDF). 
  14. ^ "BBC News - Horsemeat scandal: Supermarkets 'share anger and outrage'". Bbc.co.uk. 2013-02-15. Retrieved 2014-04-11. 
  15. ^ Reuters (15 February 2013). "Compass and Whitbread caught up in horse meat scandal". Telegraph.co.uk. Retrieved 1 February 2015. 
  16. ^ "BBC News - Horsemeat scandal: Supermarkets 'share anger and outrage'". BBC News. Retrieved 1 February 2015. 
  17. ^ "Whitbread makes food pledge after horsemeat scandal". the Guardian. Retrieved 1 February 2015. 
  18. ^ "BBC News - Horsemeat: Compass and Whitbread find horse DNA in products". BBC News. Retrieved 1 February 2015. 
  19. ^ "Premier Inn opens 600th UK hotel". Retrieved 31 January 2015. 
  20. ^ "Catering & Hospitality News". Retrieved 1 February 2015. 
  21. ^ Caterer and Hotelkeeper 14 January 2011
  22. ^ "Table Table". Retrieved 31 January 2015. 
  23. ^ "Beefeater". Retrieved 31 January 2015. 
  24. ^ "Brewers Fayre". Retrieved 31 January 2015. 
  25. ^ "Whitbread Inns". Retrieved 31 January 2015. 
  26. ^ "Taybarns". Retrieved 31 January 2015. 
  27. ^ "Britvic IPO to value drinks group at up to £537m". FT.com. 25 November 2005. Retrieved 31 January 2015. 
  28. ^ "When Alan Parker moved Whitbread from beer to hotels no-one got it, they do now". The Telegraph. 23 October 2010. Retrieved 31 January 2015. 
  29. ^ Bill, Tom (2007-01-17). "Whitbread sells TGI Friday’s to joint venture - Caterer and Hotelkeeper". Caterersearch.com. Retrieved 2014-04-11. 
  30. ^ "Pizza Hut restaurants sold to investment group". The Guardian. 9 November 2012. Retrieved 31 January 2015. 
  31. ^ "Sale of David Lloyd Leisure"[dead link]. Whitbread plc. 4 June 2007. URL accessed 4 June 2007.
  32. ^ "Luminar eyes Hogshead pubs deal". The Telegraph. 15 April 2001. Retrieved 31 January 2015. 
  33. ^ "Former owners Punch Taverns and Whitbread face Threshers liability". The Telegraph. 16 November 2009. Retrieved 31 January 2015. 
  34. ^ "Milestones". Maredo. Retrieved 31 January 2015. 

External links[edit]