After facing several challenging years, the renowned British coffee and sandwich chain, Pret A Manger, has reason to celebrate as it recently achieved a substantially high annual profit, marking a significant turnaround since 2018.
The company faced a substantial setback in 2019 when the global coronavirus pandemic hit, resulting in five consecutive years of profit decline. In 2021, it reported a shocking operating loss of £225.9 million.
As the pandemic unfolded, it became increasingly evident that the foot traffic in urban centers would decrease due to the new reality of remote work adopted by many urban professionals. Consequently, many loyal Pret regulars shifted away from their daily coffee and dining routines at Pret, resulting in a considerable impact on the company’s revenue.
In recent years, Pret has undergone a remarkable transformation and is now reaping the rewards of its strategic adaptations. In 2020, CEO Pano Christou announced ambitious plans to double the company’s size over the next five years, supported by a £100 million injection of funding from JAB and Pret co-founder Sinclair Beecham. Last year, Pret recorded a promising £50.6 million in profit, a significant departure from the previous years of losses.
Pret’s progress thus far indicates that these plans are on track. The company has expanded its presence beyond the UK, with the opening of new stores in international locations like Italy and India, and it’s not limited to major cities in the UK anymore. Pret has ambitious plans to increase its global store presence to 700 locations by the year’s end.
The most significant contributor to this impressive profit growth can largely be attributed to the reintroduction of its subscription service, initially launched in September 2020 and now known as “Club Pret.” Despite a 20% increase in the monthly cost, raising it to £30, “Club Pret” has successfully drawn in a substantial number of Pret enthusiasts.
Subscribers now enjoy an enticing 10% discount on food and snacks, a perk that immediately appeals to individuals seeking both quality and affordability in their dining choices. What’s even better is that customers can receive up to five barista-made drinks per day. This aspect of the subscription service has proven to be a game-changer, especially for coffee aficionados and those who rely on that morning caffeine kick to jumpstart their day.
This strategic move has not only bolstered their profitability but has also firmly established their position as a trailblazer in the competitive coffee and sandwich chain industry. It’s clear that this initiative has resonated with many devoted Pret enthusiasts, marking a pivotal turning point in the company’s trajectory.
It is evident that Pret dealt with their financial hiccup well and has come out on the other side a lot stronger. They hold many admirable qualities as a brand and have many unique points, such as their highly successful “Club Pret” subscription service, positioning them for a promising future.
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[Feature Image Creds: Time Out]
