J Sainsbury PLC said it plans to shut 200 in-store cafes in April, which is expected to put approximately 2,000 jobs at risk.
The UK’s second-largest supermarket will also close 34 of its less popular hot food counters and "simplify the way it runs its bakeries" in 54 stores.
Simon Roberts, chief executive, confirmed the chain was “absolutely committed” to supporting its affected employees and Sainsbury will encourage those who lose jobs to apply for other vacancies within the company.
The supermarket is currently trialling a new ‘food hall,’ named The Restaurant Hub, which will update its “eat-in, takeaway and home delivery food and drink offer for customers,” according to Sky News.
The retailer plans to open another 30 food halls, following the one being trialled in Birmingham, throughout the year, as well as opening 30 Starbucks coffee shops in its stores.
Customers could buy food from Gourmet Burger Kitchen, Ed’s Diner, and Slim Chickens, and the chain is open to expanding further if successful, Sky News added.
Around 67 cafes will stay open, for now at least, as it examines the food hall's success.
The supermarket had already closed its fresh fish, cheese, and meat counters, which contributed to 3,500 lost jobs.
Shares eased 2% to 270.2p.