Pret A Manger Co-Founder Returns to Guide Rapid International Expansion

Pret A Manger, the UK-based coffee and sandwich chain, has announced a major shake-up of its executive board as it embarks on an ambitious international expansion strategy. The company's co-founder, Sinclair Beecham, is returning to the business in an advisory role to help guide Pret's global growth plans.

Konrad Meyer, a partner at JAB Holding Company which acquired Pret in 2018, has been appointed as the new global chairman. He succeeds Olivier Goudet, who is stepping down from the position. Additionally, former Pret chairman Larry Billett is rejoining the company as a non-executive director and chair of the audit committee.

The leadership changes are aimed at supporting Pret's management team, led by CEO Pano Christou, as they pursue a goal of opening 150 new stores outside the UK by the end of 2023. The company plans to double its business size by 2026 and expand its presence to 1,000-1,500 international outlets in the coming years through partnerships with local franchise partners.

Why this matters: Pret A Manger's rapid international expansion signifies a notable shift in the company's strategy as it adapts to changing consumer behaviors in the wake of the COVID-19 pandemic. The return of co-founder Sinclair Beecham and the appointment of new board members with extensive experience in global expansion highlight the significance of this new direction for the cherished UK chain.

Since being acquired by JAB in 2018 for £1.5 billion, Pret has considerably scaled its global presence, now serving customers in 18 markets compared to just 4 prior to the acquisition. The company reported strong financial results in the first half of 2023, with sales reaching £429.9 million, a 20.2% increase from the same period in 2022.

However, Pret's rapid growth has also come with challenges. The company's debt has risen from £546 million in 2018 to £744 million in 2022, largely due to pandemic-related losses and rising interest rates. Pret has also faced backlash from customers over changes to its subscription coffee offer and price increases driven by inflation.

Commenting on the board changes, Beecham and Billett stated, "Our partnership with JAB since 2018 has been exemplary, and we look forward to working with the board and Pret's management team to reaffirm the company's mission of doing what's best for the customer, which has been the foundation of Pret's growth since its inception in 1986."

As part of its international expansion, Pret is focusing on opening stores in smaller towns, airports, and service stations, often through franchise partnerships. The company also plans to expand to over 500 shops in the UK by the end of 2024. Meyer emphasized that the board changes will help Pret reduce its debt and return to pre-pandemic strength, with an enhanced international and digital footprint.

Key Takeaways

• Pret A Manger announces major executive board shake-up for global expansion
• Co-founder Sinclair Beecham returns as advisor, Konrad Meyer appointed global chairman
• Pret aims to open 150 new stores outside UK by 2023, double business by 2026
• Pret's debt has risen from £546M in 2018 to £744M in 2022 due to pandemic losses
• Pret to focus on smaller towns, airports, and service stations for international growth