JOHN COLLINGRIDGE: INSIDE THE CITY

Whitbread sees plenty of room to profit

Whitbreads owns Costa Coffee and Premier Inn, employing about 50,000 people
Whitbreads owns Costa Coffee and Premier Inn, employing about 50,000 people
ALAMY

Whitbread might not be too good at telling pigs from cows, but it does have pedigree when it comes to filling hotel rooms and selling coffee.

Fresh from dealing with a scandal over selling pork in beef lasagne at its restaurants, the FTSE 100 owner of the Premier Inn and Costa Coffee chain is trying to negotiate its way through the minefield of spiking inflation and higher labour costs.

Analysts say it has long trailed peers when it comes to the efficiency of its workforce, employing more staff per hotel room. With about 50,000 staff, it is deeply exposed to swings in costs such as the new living wage.

While its boss may not have the makings of a barista, as our columnist Luke Johnson