News

Hundreds of driver and warehouse redundancies look likely following a hospitality company's plans to outsource its entire food logistics division to Kuehne+Nagel (K+N). Whitbread says its disposal of Pizza Hut, TGI Friday's and David Lloyd Leisure means its long-term strategy is to hand over its distribution to a third party and concentrate on its remaining businesses, including the Costa Coffee chain.

The decision will also mean the operation relocates to K+N's Northampton site. The company  says 230 staff at its Reading, Berkshire base are affected. Trade union Unite says most of its 175 affected members are happy with the redundancy terms and few want to relocate: "The majority of the union members at Reading are prepared to accept the redundancy package, and we are endeavouring to negotiate that."

A spokesman adds: "The company did the strategic review and told us what their intentions are. "The union will be working with the company and dealing with the wind-down." A Whitbread spokeswoman says a formal consultation began last week, which it hopes to complete during April.

She adds: "The preferred supplier is K+N and the preferred solution is to be provided via a national distribution centre based in the Northampton area, supported by out-bases." Further jobs are under threat in Reading after brewer Scottish & Newcastle announced it intended to close its brewery in the town. K+N handles the distribution from the site.