Plans for Restaurant and Pub Business Growth

WHITBREAD PLC
15 October 1999

Whitbread's plans for restaurant and pub business growth


Whitbread is making major changes to the management and structure of its pubs
and restaurant businesses.

David Thomas, chief executive, said:  'The moves will improve returns through
more effective marketing of our brands, flexibility in the use of our assets
and reducing our cost base.'

Bill Shannon, currently Managing Director of Whitbread Inns, will take charge
of a new Restaurants Division bringing together Beefeater, Brewers Fayre,
T.G.I. Friday's, The Pelican Group, Costa and Pizza Hut.

'This will be the largest restaurant operation in the UK.' said Mr Thomas. 
'It will have over 1300 outlets generating economies of scale in back of house
services and functional support. The combination of Brewers Fayre and
Beefeater creates a business with 650 of the best pub restaurants in the
country and maximises flexibility in the use of sites.'

Stewart Miller, now Managing Director of Whitbread Pub Partnerships, will head
up a new Pubs and Bars Division with 2900 outlets including the High Street
brands of Hogshead, Casa and Dome as well as the unbranded pubs currently
within Whitbread Inns and Whitbread's leased pub operations.

'Scale is clearly one factor in the new pub business but marketing and new
concept development are equally important.' said Mr Thomas.  'The managed and
leased pub businesses are serving the same customers. This combination will
enable them to do so more effectively and allow us to expand our positions in
growth sectors of the market.

'The decisions followed an extensive review of how Whitbread's brands and
businesses can take maximum advantage of future trends in the eating-out and
pub markets. The new structure will come into effect formally on March 1, 2000
but work has already started on its implementation.

'We are committed to our goals of accelerating growth and improving returns to
our shareholders.  Along with the actions we are taking throughout the
company, including the rapid expansion of Travel Inn, David Lloyd Leisure and
Costa, these changes will help us achieve them.

'At a personal level I very much regret that one effect of our plan will be
the initial loss of over 150 head office jobs - mainly in management,
administrative and support functions.'  Mr Thomas added: 'The people concerned
will be given every help in establishing future careers.'


For further information please contact:
City:
David Reed           -       0171 615 1324

Media:
Lesly Hughes         -       0171 615 1059
Jeremy Probert       -       0171 615 1445