Whitbread considers more disposals

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Whitbread is now believed to be considering a sell-off of many of its restaurants only months after selling all of its pubs.According to media...

Whitbread is now believed to be considering a sell-off of many of its restaurants only months after selling all of its pubs.

According to media reports, the group's financial advisers have approached would-be buyers to offer them 930 of its 1,400 remaining outlets.

These are thought to include the Café Rouge cafe-bar chain and Bella Italian restaurants, which are the bulk of its Pelican Group division. Other parts of the business reportedly being offered include its Costa coffee bars as well as its TGI Friday's restaurants (see picture), which are franchised from the brand's US owner. Whitbread's stake in Pizza Hut is also under review.

Whitbread is carrying out a strategic review of the business, which is due to be completed by the autumn. Strategic reviews often involve contacting rival operators to test the value of various parts of the business and do not necessarily mean they are already up for sale.

Whitbread has already said that any of its restaurants which do not meet sales and revenue targets could be earmarked for disposal.

It announced in October that it would sell 140 outlets from its restaurants division, which also includes Beefeater, Brewers Fayre, Brewsters, Mamma Amalfi, Abbaye and Out & Out.

This followed the group's decision to axe its 1,700 leased pubs and 1,300 managed houses, which were bought by Morgan Grenfell Private Equity to create Laurel Pub Company.

Whitbread is also focusing on its Marriott hotels chain, Travel Inns budget accommodation and David Lloyd leisure clubs.