Whitbread to review future of Beefeater

The 200-strong Beefeater chain of restaurants is undergoing an intense review after a disappointing set of summer sales figures, Whitbread said yesterday.

In an otherwise upbeat trading statement, the leisure group said that a 1.5 per cent rise in like-for-like sales figure was not good enough - the group has a target of five per cent increases across all its operations.

"Brewers Fayre and Brewsters continue to perform well," said chief executive David Thomas, "but I am not satisfied with the level of sales currently being achieved by Beefeater."

Whitbread dismissed suggestions the business might be sold. "We're absolutely certain we can get the Beefeater sites back to where they were," a spokesman told The Times newspaper. "We've said we are going to fix it, and we will."

However it is thought the lacklustre performance could result in site disposals and an acceleration of the rebranding process that has turned five into Grillbars and 37 into Out & Outs.

The 28-year-old Beefeater brand earned its stripes serving three-course meals for £3. It bought out rival Berni Inns 12 years ago to become the UK's largest full-service restaurant with more than 300 sites.

A £50m revamp in 1997, aimed at sheading the outdated steakhouse image, proved something of a flop and the company has converted many sites, leaving just 205.

Whitbread said total sales at the group rose 3.8 per cent for the 24 weeks to August 17.