Pret A Manger, the coffee and sandwich chain hit hard by the pandemic, has revealed plans to double in size over the next five years after securing a £100m investment from its owner.
The business cut jobs and closed stores last year after the work from home trend impacted footfall to its sites on high streets and near offices.
Pret, which is owned by investment group JAB and founder Sinclair Beecham, said today that it now plans to open more than 200 shops in the UK over the next two years, including 100 franchise outlets. Rather than “following the skyscraper”, the business plans to focus on growing its presence in regional and suburban areas, and transport hubs. It also wants to expand into new international markets and invest in its digital capabilities.
Pret first embarked on its ‘transformation programme’ during the summer of 2020 after sales fell heavily during the early stages of the pandemic. Accounts filed this week at Companies House show the firm’s revenue plummeted from £708m to £299m last year, with a pre-tax operating loss of £256.5m.
Its turnaround plans have included various new initiatives such as the introduction of the UK’s first Coffee Subscription service. Pret also agreed retail partnerships with Tesco, Sainsbury’s, Amazon, and other retailers to sell its bake-at-home frozen croissants, granolas, ketchups, and coffee.
Pret’s first major franchise partnership was signed over the summer, with further agreements expected later this year. The store expansion will see it build on its tie-ups with forecourt operator, MFG, and motorway services operator, Moto.
The company also announced plans to hire 3,000 staff by the end of 2022 after cutting the same number of jobs last year. Pret said that trade is now approaching pre-pandemic levels, with regional shops performing at their strongest ever levels, whilst London City shops have recovered to over 72% of pre-pandemic weekly sales as commuters and office workers return.
Pret’s CEO, Pano Christou, said: “Last year we were in the eye of the storm during the height of the pandemic. Now we have the chance to build a bright new future for Pret.
“What the pandemic has shown us is that even at the darkest moments, more people want to experience Pret – whether that’s customers outside of London and other big cities, new franchise partners who want to work with us here and overseas, investors in our business, or people who want to grow their careers here and be part of what we’re trying to build.
“It’s been an incredibly tough two years, but we have a big opportunity ahead. Last year, we delivered more change than in thirty years of Pret’s history. As we move into the next phase of our transformation, we want to keep the same pace of innovation, but use it drive new growth.”
NAM Implications:
- Pret patently rebalancing its business model…
- …to reflect the new world realities of work/home consumption…
- If necessary via site-tie-ups to match.
- If Pret can remain light on its feet, anything is possible.
