Whitbread outsources food supply operation
Premier Inn owner Whitbread has outsourced food delivery to logistics company Kuehne & Nagel.
Whitbread, which announced its plans in February alongside the merger of its hotel and restaurant divisions, is ultimately aiming to save itself £25m a year.
The company, which runs Costa, will pay a £35m one-off exceptional cost to cover its restructuring and has also made a handful of redundancies.
As part of the five-year deal with Kuehne & Nagel 340 Whitbread Food Logistics staff are transferring over to the logistics specialist.
Alan Parker, chief executive of Whitbread said there was a "compelling financial case for outsourcing versus retaining in-house food operations".
Last month Whitbread and Travelodge ended talks about a possible merger, which would have created a budget hotel group with some 800 sites.
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By Gemma Sharkey
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