Pret A Manger leans into international markets

Pret A Manger’s sales exceeded £1b last year amid the sandwich chain’s bullish expansion into new markets.

 

Since launching its first site in London in 1986, the business has grown its reach across 18 countries ranging from Qatar to Hong Kong.

 

Pret posted a profit for the first time in four years in 2022 after the pandemic saw a drop in its traditional commuter trade.

 

In October 2023, the chain entered a joint venture partnership with existing franchisee Dallas International to triple its US business over the next five years, which has led to 10 new shops being planned on the east coast by 2026.

 

According to its H1 2024 results, New York is now the “overseas capital” for Pret customers outside the UK, attracting the highest sales after London.

 

Even within the UK, Pret is looking beyond London, with six sites billed in Scotland, as well as another 10 across Ireland.

 

As a case in point, since January 2023, 87% of new Pret openings have been outside of London.

 

A quarter of its overall spending came from non-UK Pret customers, while franchising represents roughly a third of Pret’s sales globally.

 

In its full-year accounts for 2023, adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) was up 12% on 2022 (from £147.8m to £166m), while global systems sales jumped by 22% to £1.1b.

 

It opened 81 new shops, over half of which were outside the UK, in countries such as Canada, India, Greece, Spain and the US.

 

Pret has also reduced prices on its menu items after facing backlash for charging more than £7 for a baguette in September last year.

 

In July this year, it also axed its Club Pret subscription scheme after four years, which offered five free hot or iced barista-made drinks a day and a 20% discount on food for members paying £30 a month.

 

Pano Christou, chief executive of Pret A Manger, said: “I am so proud of the progress we have made over the last three years. We set ourselves some tough targets to get Pret going again after the pandemic, and we have delivered.

 

“Our teams have worked incredibly hard to make this happen, and I also want to take this opportunity to thank our customers for coming to see us and enjoying our freshly prepared food. Ever since I started at Pret more than two decades ago, the foundation for all our success has been about doing what’s best for the customer, and we are only as good as the service we give to our customers every day.”

 

He added: “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 all over the world for Pret’s menu and our unique range of ingredients and recipes.”

 

Pret currently operates around 450 UK sites and now runs roughly 130 locations outside of London.