How WFH is influencing where Pret A Manger will open new stores
The move to working from home (WFH) and hybrid office policies post-pandemic are having an impact on where Pret A Manger is considering opening new stores, its UK boss has said.
Speaking on the latest episode of City AM‘s Boardroom Uncovered podcast, Clare Clough said the business is having to adjust to the changes in working patterns and locations.
She said the result will be the brand looking to launch stores “where people live as much as areas where people work, especially in London”.
Pret A Manger looking to expand
Clough said: “We operate hybrid working at our own office and I definitely don’t think it’s for us to set the policy on where people should be working.
“I think it’s for us to adapt our business to kind of suit the needs of consumers and now we do.
“We are very much living in a world where hybrid working exists and will continue to do so. We have to adjust the business around that.
“That’s why you’ve seen us open more shops in areas where people live as much as areas where people work, especially in London, say the outer areas of Greater London.
“I think we believe that we’re relevant to people for their breakfast and lunch, whether they’re working in the office or whether they’re working from home.
“We’ll continue to grow everywhere actually – there’s still plenty of opportunity, believe it or not.
“We’ve got loads of different formats now that we operate – tiny little kiosks to the big shops with seating areas.
“Even in London I think there’s opportunity to continue to grow and we’ve got some really interesting sites that will come forward in the next year.”
The Boardroom Uncovered interview comes after Pret a Manger announced this week that it is launching new-format stores with made-to-order food and more dining space as part of efforts to accelerate its regional expansion across the UK.
The sandwich and coffee chain said the new stores are designed to encourage customers to dine in and take their time, as it also adapts to increased remote working.
Pret, which has now grown to an estate of 500 sites across the UK, is trialling the new format in Broughty Ferry near Dundee and Maidenhead, Berkshire.
It said this would differentiate from the format of most of its London stores, where it primarily sells “grab-and-go” products, with customers typically served in less than a minute.
It has developed an exclusive menu for the shops, where much of its menu is made to order, there is more space for dine-in customers and it will operate a Little Stars Cafe play area for families with young children.
The move is part of efforts by Pret to expand beyond London, with the vast majority of its recent coffee shop openings taking place outside the capital.
Prices rises ‘inevitable’ across the industry
Also in the episode, the boss of Pret A Manger in the UK revealed the tough economic reality the country is currently facing means it is “inevitable” that some prices will have to be increased.
Clough admitted recent years have been “challenging” for the high street staple but that the brand’s number one priority is to find other ways to deal with rising costs.
The managing director added that Chancellor Rachel Reeves’ decision to increase the National Minimum Wage is having a “significant impact” on the chain.
But despite the clear financial pressure Pret A Manger is facing, along with businesses across the UK, the MD said the chain would never save costs by reducing portion sizes or the quality of ingredients.
It is understood that Pret A Manger is not planning to increase prices during the rest of 2025.
Is an IPO on the cards?
The Boardroom Uncovered episode comes after it was reported at the end of last week that the owner of Pret A Manger is considering selling a stake in the sandwich chain ahead of a potential stock market flotation.
Luxembourg-based JAB Holding – which bought Pret for £1.5bn in 2018 – told the Financial Times that while it was not “currently” considering a stake sale in Pret, it could look at the move with an initial public offering (IPO) in its sights.
“As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor,” it told the FT.
It is thought to mark the first time JAB Holding has publicly confirmed IPO plans for Pret.