Sainsbury’s to axe 200 cafes amid new eat-in offering

Sainsbury’s has announced plans to close 200 of its cafes in the spring this year amid new plans to transform its eat-in, takeaway and home delivery food and drink offer, putting 2,000 colleagues at risk.

The company said the colleagues affected will be prioritised for vacant roles in Sainsbury’s stores and will be encouraged to explore alternative roles within the wider business. 

The move follows the trial of a new food hall format, The Restaurant Hub, at its Selly Oak store in Birmingham. The hub offers eat-in, takeaway and home delivered hot food and drink from brands including Caffè Carluccio’s, Gourmet Burger Kitchen, Ed’s Diner and Slim Chickens.

In partnership with Boparan Restaurant Group (BRG), the business plans to open 30 more Restaurant Hubs in the next year, with the intention to accelerate the roll-out in future years.

Additionally, Sainsbury’s will reportedly open a further 30 Starbucks coffee shops in its supermarkets in the next 12 months, bringing the total number of Starbucks in Sainsbury’s supermarkets to 60, bringing its hot food and drink offering to a total of 250 supermarkets over the next three years.

Meanwhile, 67 Sainsbury’s cafes will stay open while Sainsbury’s reviews rollout plans. It also announced plans to close less popular hot food counters in 34 stores and “simplify” the way it runs its bakeries in 54 stores. These colleagues will enter into consultation, with the aim of redeploying those affected to other areas of their store where possible.

Simon Roberts, Sainsbury’s chief executive officer (CEO), said: “Through our trials with BRG and Starbucks, we have learnt that we can offer customers a much better eat-in and takeaway experience working with partners.

“As we go through this period of transition, we have taken the difficult decision to close 200 of our cafes next month. We have spoken to all colleagues affected by these changes today and are absolutely committed to supporting them in any way we can during this uncertain time.”

Satnam Leihal, Boparan Restaurant Group CEO, added: “Customers are returning week in week out thanks to great quality food, brilliant service and unrivalled choice and we now look forward to rolling out our innovative Restaurant Hub concept across the country.”

Alex Rayner, general manager Starbucks UK, said: “We look forward to building on our existing relationship with Sainsbury’s to bring the safe, convenient, Starbucks Experience to more of their customers, and for our cafes to play an important role as a gathering place within the community.”