Pret a Manger is set to trial meal deals in the UK later this year, marking a significant shift for the sandwich chain as it faces intense competition from supermarkets. The move comes after the company's value was slashed by a third, with parent company JAB recording a £552.9m impairment charge.
The meal deal format will be tested in the last quarter of 2024, offering a croissant and coffee for breakfast, and a lunch option including a sandwich, snack, and drink. Pret has already launched a successful meal deal in France in January. Chief executive Pano Christou said the priority is to drive transactions and sustainable growth by offering great value for money.
Pret's parent company JAB revealed a pre-tax loss of £525.5m for 2023, largely due to the impairment charge. However, operational profit rose 36% to £98m, with like-for-like sales up 2.8% and total revenues increasing 10% to £1.2bn. The company cited uncertain global economic conditions and additional costs from the autumn budget, including higher employer national insurance and minimum wage, as factors behind the writedown.
Pret's workforce fell by 14% last year to 8,165 directly employed staff, due to store sales. The chain grew its international presence by 11% to 717 shops, focusing on the US. Christou emphasised plans to grow market share in the UK and internationally, prioritising city centres and travel hubs.
Last year, Pret replaced its popular £30-a-month coffee subscription with a £5-a-month 'Club Pret' offering 50% off barista-made drinks. The chain, which opened its first London store in 1986, faces rising costs including higher coffee bean prices and employment costs, amid broader challenges in the hospitality industry.
