The UK-based coffee and food-to-go chain is eyeing 700 stores globally by the end of 2023 after posting strong revenue and outlet growth and delivering its first annual profit in five years
Pret A Manger has already surpassed its 2021 target to enter five new markets by the end of 2023 | Photo credit: Pret A Manger
Pret A Manger has credited international outlet growth and the success of its Club Pret beverage subscription in the UK for driving strong half-year sales and a return to annual profitability in 2022.
The UK-based coffee and food-to-go chain reported 20% year-on-year sales growth in the six months ended 30 June 2023 to reach £430m ($563m).
A separate Companies House filing shows Pret generated £790m ($1.01bn) sales in 2022 and a £50.6m ($66m) annual operating profit – its first since 2018 when the coffee and food-to-go chain was acquired by Luxembourg-based JAB Holding Company in a deal reportedly worth £1.5bn ($1.9bn).
Pret A Manger, which operates approximately 450 stores in the UK and 150 internationally, entered seven new markets in the last 18 months, including India, Italy and Luxembourg in the first half of 2023. International sales accounted for 19% of revenues, the London-based operator added.
Pret A Manger has already surpassed its September 2021 target to enter five new markets by the end of 2023 and is currently ‘tracking ahead’ of its goal to double the size of its business by the end of 2026. The coffee and food-to-go chain forecasts it will surpass 700 outlets globally by the end of this year.
In the UK, the coffee and food-to-go chain said 55% of new UK outlets opened since January 2022 were outside of London, with weekend sales increasing 271% during the same period.
Adoption of the brand’s app-based coffee and beverage subscription, updated in April 2023 to include a 10% discount on all in-store food alongside five beverages per day, also continues to grow despite a 20% price rise.
Individual subscribers increased 67% year-on-year to reach 57.9 million in 2022, with total digital transactions accounting for 42% of all sales during the first six months of 2023.
“It’s been three years of transformation at Pret, in which we’ve evolved into a truly global, multi-channel brand, and emerged as a stronger business than we were in 2019. We’re focused on continuing to grow, while constantly innovating to bring Pret’s freshly made food and organic coffee to brand new places, from Bishop’s Stortford to Bradford and from Italy to India,” said Pano Christou, CEO, Pret A Manger.
Pret A Manger was severely impacted by a loss of commuter and office worker trade during the pandemic, with sales plummeting 60% in 2020.
Despite the ongoing challenging economic backdrop, Pret A Manger said it remains ‘well-positioned’ for further growth in the second half of 2023, both through new stores and increasing sales at existing outlets.
Pret A Manger is expected to enter three new markets within the next six-12 months via franchise partnerships in Spain, Portugal, and Israel.