Whitbread has reported that sales for the first quarter of the current financial year dropped 5 percent year-on-year, amid a restructure of its UK-wide pub estate.

The hospitality operator announced last year it would convert 112 F&B sites into hotels, and offload 126 venues, which has so far generated £300m but reduced sales opportunities.

“In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market,” said CEO Dominic Paul.

“Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year and we remain confident that we can continue to outperform the market.”

Food and drink sales for the quarter fell 16 percent, year-on-year, which the company described as being “in line with expectations,” with Paul “our Five-Year Plan is on track to deliver incremental profit of at least £300m by FY30.”

Last year’s restructuring process saw Whitbread shed 1,500 employees, while adding 3,500 hotel rooms to its portfolio, however total accommodation sales were down 2 percent versus 2024.