Premier Inn owner Whitbread could lay off as many as 1,500 workers as it looks to shift focus from restaurants to hotels.
It plans to cut the number of branded restaurants by more than 200, with nearly half of these likely to be converted to hotel rooms.
The group’s restaurant brands include Brewers Fayre and Beefeater.
Whitbread says it hopes to minimize redundancies by redeploying restaurant staff.
The company has a combined UK workforce of 37,000.
Overall it plans convert 112 restaurants into new hotel rooms and sell off 126 of its less profitable restaurants.
It would add more than 3,500 hotel rooms to its portfolio.
Whitbread CEO Dominic Paul, said: “We recognise that our transition will impact some of our team members so we will be providing support throughout this process.”