​Sainsbury’s to Close Cafés, Streamline Operations, and Cut Costs

Sainsbury’s has announced the closure of its remaining 61 in-store cafés, a move set to affect over 3,000 employees. The decision, described by the supermarket chain as “difficult,” is part of a broader cost-cutting initiative aimed at simplifying its operations.

The closures will extend to the supermarket’s patisserie, hot food, and pizza counters. Instead of these services, Sainsbury’s plans to stock their most popular items directly in store aisles, reflecting a shift in customer demand and shopping habits.

A spokesperson for Sainsbury’s noted that most of its customers “do not use the cafés regularly,” while the food halls operated by specialist partners are “becoming more and more popular.” This follows a trend established in 2022 when Sainsbury’s shut 200 in-store cafés and expanded its collaboration with Boparan Restaurant Group. The partnership introduced Restaurant Hubs in select locations, featuring brands such as Gourmet Burger Kitchen, Caffè Carluccio’s, and Slim Chickens. Currently, 21 Restaurant Hubs are operating in Sainsbury’s stores nationwide.

Despite these closures, Sainsbury’s recently reported strong Christmas trading figures and projected annual profits to exceed £1 billion. However, CEO Simon Roberts highlighted financial pressures resulting from rising costs, particularly the increase in employer National Insurance contributions announced in the recent budget. Starting in April, this rise is estimated to cost the company £140 million.

Roberts explained that the company’s goal of achieving £1 billion in cost savings requires significant adjustments, including reducing around 20% of senior management roles in the coming months. He stated: “The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements.”

The latest developments signal Sainsbury’s efforts to adapt to changing market conditions and customer preferences while addressing rising operational costs. The company employs 148,000 people across nearly 600 supermarkets and more than 800 convenience stores, making these changes a significant moment in its history.