Morrisons to close number of cafes and counters, putting 365 jobs at risk

Morrisons has said 365 jobs are at risk of redundancy because of plans to close some of its cafes, convenience stores, florists and fresh food counters.

The supermarket chain said it was costing more to run the services than it was making from customer spending.

The closures will see it shut down 52 cafes, all 18 market kitchens, 17 Morrisons Daily convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.

But there will be a total of around 365 employees at risk of redundancy.

Rami Baitieh, Morrisons’ chief executive, said the changes were a “necessary part of our plans to renew and reinvigorate” the chain and invest in areas that “customers really value”.

In most locations, the Morrisons cafe has a “bright future”, but a small number have specific local challenges which made closures “the only sensible option”, Mr Baitieh said.

The chief executive said it was committed to the Market Street model – which offers fresh meals such as pizza, pies and rotisserie chicken for takeaway in some shops – but that parts of it were “simply uneconomic”.

Some fresh food counters or cafes in shops could be replaced with specialist offers from third-party companies.

“We will of course take particular care to look after all of them well through the coming changes.”

Morrisons is the UK’s fifth largest supermarket, according to data supplied by analysts Kantar, and hires around 95,000 staff across the country.

It was overtaken by Aldi in the rankings in 2022, with the German discounter rival enjoying rapid growth as shoppers took advantage of cheaper prices during the cost-of-living crisis.

Plans to revive Morrisons have been set in motion, having faced a challenging few years since being taken over by a US private equity firm in a £7 billion deal.

It has since benefited from sales growth and taking market share from competitors after growing its loyalty scheme and bringing down some prices.