Why is Marks and Spencer UK closing in‑store cafés?

The company is reallocating space to larger Foodhalls. Grocery drives frequent trips and higher sales per square foot than seated cafés. By growing fresh and prepared ranges, M&S aims to boost conversion, improve availability and lift store productivity, while redeploying café staff into food operations to protect service levels.

How many M&S cafés are closing and what happens to staff?

Fourteen in‑store cafés are closing. Marks and Spencer UK says colleagues in affected stores are being redeployed into other roles, primarily within Foodhalls. That approach helps retain experience, limit redundancy costs and keep customer service consistent during refits and layout changes.

What does the Foodhall expansion mean for shoppers?

Expect wider fresh, bakery and meal‑for‑tonight choices, clearer layouts and faster trips. The trade‑off is fewer seated options. With more space for products and back‑of‑house, stores can improve availability and replenishment, which should support value perception and basket growth over time.

What should investors watch over the next quarter?

Track refit progress, any short‑term trading disruption, and evidence of rising sales density. Watch capital expenditure guidance, food gross margin trends, and updates on the pipeline of up to 500 potential UK sites. Signals of faster basket growth and stable service would support the strategy.

Global Market Insights

Marks & Spencer UK February 26: Cafe Closures Signal Foodhall Shift

ByDanny Kontos February 26, 2026February 26, 2026

Marks and Spencer UK is closing 14 in‑store cafés and reallocating space to larger Foodhalls. The move supports a grocery‑led mix, higher sales density, and a wider fresh range. Staff in affected stores are being redeployed, while the group scouts up to 500 potential UK sites. For investors, this points to near‑term capex and margin noise, but also better store productivity over time. We set out what the M&S cafe closures mean for shoppers and how the Foodhall expansion shapes the UK retail strategy.