Sainsbury’s Cuts 2,000 Jobs Closing Cafes and Hot Food Counters

(Bloomberg) --

J Sainsbury Plc is cutting 2,000 jobs as it closes in-store cafes to make way for new food halls and Starbucks cafes amid a wider revamp of store operations.

Britain's second-largest grocer said it will close cafes in 200 stores this spring, according to a statement Tuesday. The supermarket also plans to shut less popular hot-food counters in 34 stores and simplify its bakeries in 54 locations.

While the decision will be “unsettling” for staff, it is essential to help ensure Sainsbury can offer customers the best possible food and drink at affordable prices, said Chief Executive Officer Simon Roberts.

Employees affected by the changes will be prioritized for vacant roles in stores and encouraged to look for other roles in the business, the company said.

Sainsbury is partnering with Boparan Restaurant Group for the new food halls, dubbed The Restaurant Hubs, and will open 30 in the next year. It follows a successful trial in Birmingham featuring brands including Caffe Carluccio's and Gourmet Burger Kitchen.

The supermarket chain is also opening 30 more Starbucks coffee shops in the next 12 months as part of the plans focused on eat-in, takeaway and home delivery. If the concept proves popular, the grocer hopes to have upgraded 250 stores with the new in-store food offer over the next three years.

Sainsbury and its rivals, including Tesco Plc and Asda, have been restructuring their businesses for the last few years as they adapt to changing consumer habits and trends. Tesco said earlier this year it was cutting 1,600 jobs after changing how stores operate overnight and after closing its experimental discount chain Jack's, citing shifting shopping habits.

Shares in Sainbury were down just over 2% at 3:32 p.m. in London.