​Pret A Manger is Broadening Its Horizons

Pret A Manger has demonstrated a robust commitment to expanding its international footprint, with sales surpassing £1 billion in the last year. This marks a significant achievement for the sandwich chain, which has been on a steady growth trajectory since its first location opened in London in 1986. Pret operates in 18 countries today, including Qatar, Hong Kong, and the United States.

Ajay Suresh from New York, NY, USA, CC BY 2.0, via Wikimedia Commons

The company's global expansion has been a key factor in its financial recovery following several years of reduced profits during the pandemic. In 2022, Pret A Manger returned to profitability, aided by a renewed focus on diversifying its market presence. Traditionally reliant on UK commuter traffic, the chain now sees growing demand from international customers, particularly in the US.

A recent joint venture with Dallas International, one of Pret's existing franchisees, is set to triple the company's US business over the next five years. As part of this expansion, 10 new shops are planned on the east coast by 2026. New York has quickly become a vital market, with sales now second only to those in London, positioning the city as Pret's leading overseas hub.

Pret's growth strategy extends beyond the US. Within the UK, the chain is branching out from its London stronghold, with six new locations planned in Scotland and 10 more set to open across Ireland. Reflecting this shift, 87% of Pret's new UK shops since January 2023 have been outside London.

Internationally, Pret continues to increase its presence, with a quarter of its revenue coming from non-UK markets. Franchising is also becoming a more prominent part of the business model, accounting for around a third of global sales. 2023 Pret opened 81 new shops, with more than half located outside the UK in markets such as Canada, India, Greece, Spain, and the US.

Financially, Pret's growth is evident. Adjusted EBITDA for 2023 rose 12% from the previous year, reaching £166 million, while global sales jumped by 22% to £1.1 billion.

Tseuwonn Rekauidscoo, CC BY-SA 4.0, via Wikimedia Commons

However, the brand's pricing strategies have not been without challenges. Pret responded by lowering prices after facing criticism for charging over £7 for a baguette in September 2023. The company also ended its popular Club Pret subscription service, which offered members five free hot or iced drinks a day and a 20% discount on food for £30 a month.

Pano Christou, Pret A Manger's CEO, acknowledged the hard work behind the company's turnaround. "I am so proud of our progress over the last three years. We set some tough targets to get Pret going again after the pandemic, and we have delivered," Christou said.

He added that the company's international success offers both a challenge and an opportunity: "The fact that £1 in every £4 is now spent outside the UK is both an achievement and an opportunity for our business. It shows how big the appetite is from customers worldwide for Pret's menu and our unique range of ingredients and recipes."

Pret A Manger operates around 450 sites across the UK, with approximately 130 of those outside London, as the brand continues its global journey.