Whitbread

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Our Strategy

WE PUT THE CUSTOMER AT THE HEART OF EVERYTHING WE DO.

Our strategy is to provide sustainable long-term value for our shareholders by growing our successful Premier Inn and Costa brands, whilst delivering a good return on capital.

OUR STRATEGIC PRIORITIES

We have introduced three strategic priorities:

Grow and innovate in our core UK businesses

Our Premier Inn network is formidable. We have 40% more sites than our nearest competitor and our consistency of customer satisfaction is a core strength. Our ability to deliver growth is proven. We open around 4,000 UK rooms per year, which roughly translates to three new hotels every month. We remain on track for our 2020 milestone and have identified a growth runway beyond 100,000 UK rooms.

Our compact city centre hotel concept ‘hub by Premier Inn’ has been a great success giving us access to profitable city centre locations with high property costs, delivering a good return on capital, whilst offering customers great value, high quality rooms in great locations.

Costa is a proposition for the whole of the country. We operate in all types of location from high streets to retail parks and Drive Thrus, through both equity and franchised models. Our plans are to enhance the UK offer, through improvement of the customer proposition, including building on our coffee credentials and delivering ‘finer food’.

Focus on our strengths to grow internationally

Germany is a structurally attractive market for Premier Inn. The market is in steady growth, currently dominated by independents and with the largest brands at a fraction of our UK scale.

For Costa, China is a large market with a growing consumer middle class and coffee culture and has the potential to provide a significant future growth engine. Costa Express represents a significant international growth opportunity. Costa bought Coffee Nation in 2011 and, since then, performance has exceeded our expectations. Costa Express is a technologically advantaged business, both at the front-end in the coffee, and at the back-end through its infrastructure.

Build the capability and platform to support future growth

It is essential that we build the capability to support our long-term growth. We have identified four themes under this heading:

Efficiency - to deliver significant efficiency savings, worth £150 million, over a five-year period, to help mitigate sector cost pressure.

Technology – to develop scalable platforms, create a centre of digital excellence and embed data insight across the business.

Organisation - dynamic leadership with clear executive accountability, and relentless customer focus supported by agile decision making.

Property –  we have a unique model that creates competitive advantage. Our property strategy is centred on a balanced portfolio with Costa as an asset-light leasehold model and Premier Inn a majority freehold estate.