Pret A Manger stated yesterday that its plan to more than double the size of its business is progressing well after posting a jump in sales and its first profit since 2018.
The food-to-go chain generated an operating profit of £50.6m in 2022 compared with a loss of £226m in the previous year, which was impacted by the fallout from the pandemic.
Pret, which is owned by JAB Holding and operates more than 600 shops worldwide, also reported a jump in sales in the first six months of this year, up 20.2% to £429.9m.
The group stated that its buoyant results reflect the success of its transformation strategy, which has helped it emerge as a “stronger business than we were in 2019”.
Pret said it was tracking ahead of its mid-term growth target announced in September 2021 to double the size of its business within five years. It has entered seven new international markets since 2021, surpassing its target of five new entries by end-2023, with international sales now accounting for 18.9% of revenue.
International expansion has been a key driver of growth. Pret now operates in 15 markets on three continents and expects to have over 700 shops worldwide by the end of 2023.
Despite the challenging economic condition, Pret stated that it remains “well-positioned” to continue to grow through the opening of company-operated and franchised shops.
In the UK, Pret has continued to open shops in new locations, such as Bishop’s Stortford and Worthing. More than half (55%) of new Pret shops that opened since January 2022 have been outside of London. This shift is reflected in Pret’s growing weekend trade. Sales on weekends have increased by 271% since 2021, with over 70% of Pret shops now open on the weekends, up 85% on 2021.
Business growth has also been supported by the popularity of Pret’s subscription offer, Club Pret. First launched in 2020 as a coffee subscription, offering subscribers up to five drinks a day for a monthly fee, it has now expanded into food with a 10% discount on everything sold in-shop to reward loyal customers.
The subscription generated 57.9 million redemptions globally in 2022, up from 34.7 million redemptions in 2021, and sales per Club Pret transaction are close to 30% higher than those without a subscription.
Pret has also introduced measures to mitigate the impact of cost inflation on customers, providing more value-driven options such as the Made Simple range, offering some sandwiches at a lower price point, as well as its subscription offer.
Pano Christou, Pret’s Chief Executive, said: “It’s been three years of transformation at Pret, in which we’ve evolved into a truly global, multi-channel brand, and emerged as a stronger business than we were in 2019. We’re focused on continuing to grow, while constantly innovating to bring Pret’s freshly made food and organic coffee to brand new places, from Bishop’s Stortford to Bradford and from Italy to India.”
Peter Backman, a food industry analyst, stated that the results were a “good outcome” for Pret given the collapse in city centre and travel hub trade during the Covid crisis and its immediate aftermath.
“Reorienting its locations to where people are seems to be working in the UK but it’s a slow process,” said Backman. “In the meantime, subscriptions seem to be working as does international expansion but again that’s a long-term growth play.”
