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UK's Sainsbury's Plans To Close 200 Cafés, Puts 2,000 Jobs At Risk

By Dave Simpson

British supermarket group Sainsbury's SBRY.L has said that it plans to close 200 in-store cafés next month, putting 2,000 jobs at risk as it brings in third-party providers instead.

Hot Food Counters And Bakeries

The UK's second largest grocer after Tesco TSCO.L also said that it would close hot food counters in 34 stores and simplify the way it runs its bakeries in another 54.

Impacted Staff

It said that the impacted cafe staff will be prioritised for vacant roles in stores and will be encouraged to explore alternative roles within the wider business.

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Sainsbury's said that it aims to redeploy the affected staff on hot counters and bakeries.

More Restaurant Hubs And Further Starbucks Coffee Shops

A deal with Boparan Restaurant Group (BRG) will see 30 more Restaurant Hubs open in Sainsbury's stores over the next year, following a successful trial at the group's Selly Oak store in Birmingham.

The hubs offer customers eat-in, takeaway and home delivered hot food and drink from brands including Caffè Carluccio’s, Gourmet Burger Kitchen, Ed’s Diner and Slim Chickens.

Sainsbury’s also plans to open a further 30 Starbucks SBUX.O coffee shops in its supermarkets over the next year, taking the total to 60.

"Working with BRG and Starbucks, Sainsbury's plans to transform the eat-in, takeaway and home delivered hot food and drink offer in 250 of its supermarkets over the next three years," it said.

Full Year Profit Forecast And Sales Growth

Sainsbury's raised its full year profit forecast in January. However, monthly industry data has shown its sales growth lagging Tesco.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
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