Consumer facing businesses are facing a flurry of cost rises and Costa Coffee and Premier Inn owner Whitbread (WTB) is responding with a £150m cost-cutting drive.
Recently installed chief executive Alison Brittain said the cumulative savings would be achieved over the next five years and see improvements made in procurement, the supply chain, labour management and improved processes.
The hope is these savings will offset some of its investment in the business as well as the pressure of rising business rates, wage rises being driven by the national living wage and foreign exchange impacts.
Ms Brittain said the plan would "support our growth for many years to come". She added it would enable it to achieve its existing margin guidance of 20-30 basis points of investment for Premier Inn and roughly 100 basis points of investment for Costa in both 2016/17 and 2017/18. Margins should stabilise from 2019 onwards.
