Whitbread has reshuffled the management team in charge of its two restaurant divisions after the departure of Phil Urban, managing director of the group’s pub restaurants.

Urban will be replaced by Mark Phillips, formerly managing director of the thriving Costa Coffee chain.

Following a 23% slump in pub-restaurant operating profits to £60.7m in the year to 2 March 2006, Whitbread has elected to keep only those sites which are co-located with Premier Travel Inn hotels.

The plum role of heading up the high-street Costa Coffee chain goes to John Derkach, formerly managing director at Pizza Hut.

Costa boosted its operating profits by 26% to £13.3m in the past financial year.

However, a poor performance by TGI Friday’s slashed the high-street restaurant division’s operating profits by 19% to £12.7m.

As result, Whitbread is reviewing its investment in both TGI and Pizza Hut (which, as a joint venture with Yum! Brands, is accounted for separately).

A managing director for Pizza Hut has yet to be announced.

Whitbread’s star performer was its budget hotel business, which boosted operating profits by nearly 38% to £139.2m.

However, operating profits at its David Lloyd Leisure health and fitness clubs slumped by 42% to £22.7m, despite membership numbers being up.

Whitbread to sell pub-restaurant sites >>

Costa bans smoking in all UK outlets >>

Whitbread to axe jobs >>

Premier Travel Inn leads sluggish Whitbread performance >> 

By Angela Frewin

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