​Why I Think Pret-A-Manger Was Right to End Free Coffee

In a bold move reminiscent of a plot twist in a business thriller, Pret A Manger has decided to end its famous free coffee subscription. As someone who frequents Pret and has observed its evolution over the years, I find this decision both fascinating and necessary. Let me explain why I believe Pret's new direction makes perfect sense.

Clive Schlee, Pret's former chief executive, firmly believed in never discounting. To him, lowering prices meant devaluing the product. However, Pano Christou's successor disrupted this philosophy in 2020 when he introduced the "Club Pret" subscription service. For a mere £30 a month, customers could enjoy up to five coffees a day and 20% off food. It was a dazzling deal designed to draw customers back during the pandemic's bleakest days. And it worked. Perhaps too well.

The free coffee scheme began to bleed money as the pandemic receded and office workers trickled back to city centres. Pret was handing out millions of pounds worth of free coffee weekly. The scheme seemed like a masterstroke in desperate times and was unsustainable in the long run. Students and savvy customers quickly learned to exploit the offer, further straining the company's resources.

Last week, Pret announced a significant shift. Come September, the deal would transform £10 a month for five half-price drinks daily and no more food discounts. Pret's UK head, Clare Clough, delivered the news with pride and pragmatism. "Four years and over a quarter of a billion coffees later, we have decided that it's time to rethink how it works," she stated.

Offering different prices to Club Pret members and non-members was a bone of contention within the company. It never sat well with many, including a senior insider who bluntly remarked, "It never made any sense in the first place." This inconsistency was jarring for a brand that prided itself on simplicity and quality.

Pret was hit hard by the pandemic. With a significant number of its stores located in central London, the rolling lockdowns and shift to remote work were particularly brutal. They needed a radical solution to survive, and the subscription model seemed like a lifeline. It was a gamble that paid off initially but became unsustainable as normalcy returned.

Interestingly, the subscription idea was borrowed from Panera Bread, another JAB brand. But unlike Panera, Pret couldn't maintain the momentum. The scheme drew a staggering 16,500 subscribers on its first day, far exceeding expectations. But soon, it became clear that the model was flawed. Loyal customers were already frequent visitors, and the offer did little to increase their visits. Instead, it gave away coffee to those who would have bought it anyway.

Pret's decision to end the free coffee giveaway is a move back to basics. They are refocusing on offering value to all customers, not just subscribers. With plans to expand overseas, including new stores in Madrid and Bangalore, the savings from this shift will fuel growth.

Clare Clough summed it perfectly: "Given that most of our customers are not Club Pret subscribers, our priority now is to focus on better value for everyone, as well as the Pret quality and service you've come to know and expect."

Pret is returning its 99p filter coffee and reducing prices on popular items like the All Butter Croissant and Free-Range Egg Mayo sandwich. These changes underline their commitment to value without compromising on quality.

In conclusion, while Pret's free coffee era was an exciting experiment, embracing its more sustainable approach is time. This decision, though controversial, shows Pret's willingness to adapt and evolve. As a regular customer, I look forward to seeing how these changes enhance my Pret experience.