The next five years are set to see massive growth from the Whitbread group. The company responsible for the budget hotel chain Premier Inn, and the UKs most branded high street coffee shop, Costa Coffee.
Both groups have seen significant growth in the past financial year, with the Whitbread group aiming to double the growth in the next five years. The London Olympics aided the majority of growth from Whitbreads Premier Inn hotel chain, in 2012, as the majority of profits were seen in and around central London.
Currently Premier Inn has an average 7 – 8 % market share in towns around the UK. The market share lags behind at a lower 6% in and around the London area. That’s the area the group are set to make the most of their expansions in, by opening two new chains, to increase their room capacity in London.
In terms of employment, that’s excellent news for those involved in the hospitality and catering industry. One of the largest industries around the UK. For the hospitality sector, Whitbread aims to increase the number of rooms they have by, 75’000 rooms.
A major hike over the current 51’671 rooms, which is sure to see year on year increase, supporting the jobs made available. That’s a key thing for jobs, as it’s giving job security to employees as well potential for career development.
When it comes to business growth in the hospitality sector, there are going to be seasonal up trends and down trends. For smaller restaurants, bars and B &Bs, that can see some unstable employment with temporary contracts.
With Whitbread, things appear to be done differently. As the company has restaurants such as Beefeater, hotel chain, Premier Inn, and high street Costa Coffee in their portfolio of business, it’s easy to see how they can maintain the momentum. While things like bad weather can stop people going out to restaurants, there’s people on the high streets that will drop into a Costa branch, out the cold for a warm drink.
While sales can drop in one area of the business, there’s another there that’s going to see a boost in business. With 1’500 coffee shops around the UK, that’s plenty of room for profits. Revenue to the tune of £90m is what Costa has brought to the group.
Overall sales were announced on Tuesday, (30th April 2013), of a staggering £1bn, which is a 22% rise for the year up to March, and was also excluding sales from the groups franchised outlets, which takes the rise up to 24%.
The rapid expansion of the coffee chain, combined with the groups expansion of Premier Inn, have seen them responsible for creating 3’000 jobs, with the average salary for staff, estimated at £16’045. Given that the market share of the company is lagging behind within and around London, that’s where the majority of jobs are going to be created.
The target age group the firm are looking to employ are geared towards bringing younger talent into their organisation, as that’s been identified as an age group experiencing the highest unemployment rate, and will certainly benefit from the creation of 12’000 jobs.