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M&S Cafes to Close in Major £300 Million Shake-Up of Food Stores

Marks & Spencer has announced it will close 11 of its smaller M&S cafes across the UK as part of a sweeping £300 million restructuring plan aimed at expanding and modernising its food business. The closures, which represent fewer than 4% of the retailer’s 316 food shops, are part of a broader push to enhance the M&S Food brand and streamline store layouts for greater efficiency.

According to the company, the move is designed to create more space for high-demand food products and improve the shopping experience for customers. While some Marks & Spencer cafe closures will take effect over the coming months, M&S has confirmed that no staff will lose their jobs — all affected employees will be redeployed to other in-store roles.

A New Chapter for M&S Cafes

The retailer stressed that this decision does not mark the end of its café business. In fact, M&S cafes will continue to operate in hundreds of larger stores, while the company also plans to open a series of new “coffee shop” formats designed to reflect modern customer preferences.

“As we look to modernise our food business and offer the best of M&S Food to more people, more often, we’re investing in our store estate to give our customers the widest possible product range,” an M&S spokesperson said.

The spokesperson added that in smaller stores, where shoppers prefer a broader food selection, café space will be repurposed to allow for expanded product lines. Meanwhile, new M&S coffee shops serving freshly prepared meals and Fairtrade barista coffee are expected to open in key retail locations — including the brand-new Bristol Cabot Circus outlet.

Focus on Food Hall Expansion

The decision to close a handful of M&S cafes is part of a wider effort to transform the company’s retail portfolio. The high street giant plans to grow its number of food halls from 316 to approximately 420 stores by 2028.

This is part of a strategic £300 million store rotation and investment programme, which includes converting several full-line M&S locations into food-only stores. The goal is to make the food business more agile and responsive to local market demand, while ensuring a consistent and modernised store design across the country.

An M&S representative noted that the company’s transformation strategy is designed to ensure the “long-term health of the business” by focusing on customer trends, digital integration, and operational efficiency.

No Job Losses Amid Marks & Spencer Cafe Closures

Despite the café closures, M&S emphasised that all affected employees will retain positions within their respective stores. The company has reassured staff that the reshuffling will not result in redundancies.

This comes as M&S continues to strengthen its workforce resilience following a major cyberattack in April 2025, which temporarily disrupted online orders and cost the company around £300 million. The retailer has since recovered strongly, with financial analysts describing the recent structural investments as a “renewed commitment to growth and innovation.”

Why Marks & Spencer is Investing in Food

Industry experts say that M&S’s renewed focus on food halls and selective M&S cafes reflects changing consumer behaviour. Customers increasingly view M&S Food as a premium grocery brand offering quality and convenience — a positioning that has proven highly successful in the UK’s competitive retail sector.

With its new plan, M&S aims to reinforce that strength by allocating more store space to best-selling grocery products and ready-to-eat meal ranges, while also maintaining a limited but elevated in-store café presence.

Retail analyst Sarah Lloyd of Retail Economics said, “M&S’s shift to prioritise food hall expansion over smaller cafés shows how the brand is adapting to what its shoppers want most — great food, quick service, and modern spaces.”

The Bigger Picture: M&S’s Road to 2028

Looking forward, Marks & Spencer’s roadmap to 2028 includes:

  • Expanding to 420 food stores nationwide
  • Launching modern café and “coffee to go” concepts
  • Upgrading older store formats with digital checkouts and faster service options
  • Reinforcing its supply chain and cybersecurity following April’s breach

The company believes this long-term plan will keep M&S at the forefront of UK retail innovation while balancing heritage with modern consumer needs.

Bottom Line

The closure of select M&S cafes marks another step in the retailer’s evolution as it seeks to build a stronger, more efficient food business for the future. While some café fans may be disappointed, the move ultimately reflects a broader ambition — to make Marks & Spencer Food more accessible, competitive, and ready for modern shoppers.

Stay informed on retail and business transformations at StartupNews.fyi — your go-to source for the latest updates on UK brands and innovation.

by Honey

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