Case Study
Pret plans UK regional franchises in drive to cut reliance on London
Sandwich chain in talks with possible partners, including for drive-throughs and shops in smaller
towns
5)
UK sandwich chain Pret A Manger is planning to launch roughly 100 franchises outside London
and other big UK cities, as part of efforts to cope with the shrinking of its office-working
customer base.
The group has acknowledged that it had become too reliant on London and it suffered more
than some rivals because of widespread working from home during the pandemic. It has closed a
number of stores and, last year cut a third of its workforce as sales fell to their lowest levels in a
decade.
It is now talking to possible regional franchise partners, including for Pret drive-throughs and
high street shops in smaller towns.
“In some areas, such as regional towns and parts of northern England, our shops are busier than
they have ever been,” the company said, adding that it was looking to establish franchise
partnerships “to bring Pret to more people in towns and travel hubs across the UK”.
It said the process would also help Pret establish where it could open shops that it would run
itself.
“Over the past few years, we’ve seen there’s a real demand from customers in different parts of
the country for our freshly prepared food and organic coffee,” it said.
Pret’s other changes to its business model have included a £20 coffee subscription, a plan to roll
out coffee vending machines and trials of shops inside Tesco stores.
This recent move, which was first reported by the Sunday Times, is the latest in a series of efforts
to diversify away from its traditional city centre markets.
It has also introduced retail ranges including coffee and croissants.
Pret was bought by investment group JAB Holdings for £1.5bn in 2018.
Assessment Tasks:
You are a business consultant to Olivier Goudet, CEO-JAB Holding Company, who wants to
establish strong growth in less than two years. Your role is to conceptualise Pret A Manger’s
Business and Operations Model using theories learnt to advise your client.
Please answer the following questions:
Identify and critically assess the operational challenges that Pret A Manger could face for
achieving this accelerated expansion in ever increasing competitive market using concepts and
theories learnt. (1000 words)
Critically evaluate the business operations of a local Pret A manger or any café you are familiar
with. Make recommendations to your client how can the business operations could be improved
using concepts and theories learnt. (1500 words)