WHITBREAD has confirmed that its Ross-on-Wye Beefeater restaurant has closed due to it being a ‘lower-performing’ outlet.

Whitbread, the owner of Beefeater chain, revealed earlier in the year its plans to close 126 restaurants following a reduction in footfall these locations.

A spokesperson for Whitbread said: "After many years serving the community we can confirm the Travellers Rest in Ross-on-Wye is closing its doors.

"We'd like to thank the local community for their support over the years and our amazing team."

Whitbread said the cost-cutting programme will save the company about £150 million over the next three years.

Earlier this year Whitbread reported pre-tax profit of £452m for the year - a rise of 21 per cent. This is despite the 126 restaurants it is closing making a loss of £9million between them.

Dominic Paul, Whitbread's chief executive, said in an earlier statement: "Continuing to invest in our brand and teams for the benefit of our guests and customers has secured a market-leading position and is also delivering strong business performance.

"Our significant freehold estate and strong balance sheet mean we are in a unique position to be able to add 3,500 new hotel rooms and meet the strong demand we are seeing from guests around the country, continuing to offer a great breakfast and dinner at all of our hotels. This plan is a further positive step, delivering a better experience for our hotel guests in the UK.”

The company also said it will offer a £150 million stock buy-back to shareholders in the next six months and increase dividend payments by 26 per cent this year.

Mr Paul, referring to the job cuts of around 1,500 staff said the decision to close 126 stores was ‘really challenging’ and added: “It’s really important that we therefore handle that in the right way for our people. However, we also have made sure that we balance our business overall.”

The brewing company Whitbread created the Beefeater restaurant chain in 1974 as a rival to the Berni and Schooner Inns operating in towns and cities operating at the time.