Whitbread to sell Pelican Group

Whitbread is likely to off-load its Pelican group of 200 restaurants, comprising mainly the Cafe Rouge and Bella Pasta chains, because of ailing sales.

The company described the performance of its high street restaurants as unacceptable.

However, it is thought TGI Friday's has survived and the former brewer will retain Pizza Hut and Costa Coffee, which are both being expanded.

The group is currently in a closed period and was not willing to comment as this article was posted.

It is thought a statement will be made at the end of the month at the group's results for the first half of the financial year.

Whitbread bought the Pelican group five years ago from Roger Myers and Karen Jones, its founders, for £133m. The estate, then 103 restaurants, has almost doubled in size.

Whitbread's restaurants made profits of £123m on sales of £1.1bn in the year to March. But the Brewers Fayre and Beefeater pub restaurants accounted for more than 80 per cent of that figure.

One analyst said: "The more they sell the better. The restaurants take up too much management time for the profit contribution they make."