British hospitality company Whitbread has unveiled details of an efficiency program aimed at delivering around 150 million pounds ($187.4 million) in cumulative cost efficiencies over the next five years.
The company, which operates the Costa coffee chain, Premier Hotel group and Beefeater restaurants, said during an investor day held in London on Tuesday, that the program would cover a range of areas including procurement, supply chain, labor management and process improvements.
Along with organic growth, the company said that the program would aim to help to mitigate ongoing sector headwinds, including the British government’s new national living wage, which came into law in April and is due to be increased next April, business rates and foreign exchange, according to a statement released by the company.
Whitbread said that the program, along with organic growth, would enable the company to achieve its existing margin guidance of approximately 20-30 basis points of investment for Premier Inn in 2017/18 and for approximately 100 basis points of investment for Costa in both 2016/17 and 2017/18.
By Caroline Williams