Pret A Manger launches a battle against supermarkets: set lunches will appear in the chain.

According to The Sun: Pret A Manger is planning to introduce promotions for set lunches, aiming to compete with large supermarkets that have long been offering them for sale.

This move comes after Tesco and Sainsbury's raised prices on their set lunches.

Pret plans to trial a new lunch format in October, November, and December of this year.

Company CEO Pano Christou emphasized that the chain will focus on 'offering excellent value for money,' which will be part of a mid-term growth strategy and a return to stable profitability.

Details regarding pricing and locations for the pilot period have not yet been disclosed.

As large supermarkets have long been offering set lunches, typically consisting of a sandwich, snack, and drink, Tesco recently raised its price by 25 pence, citing ongoing food inflation.

According to the latest financial reports, Pret incurred a pre-tax loss of £525.2 million for the year ending January 2, primarily due to a £552.9 million write-down after a revaluation performed by owner JAB, which acquired the chain in 2018.

These losses followed a £61.7 million loss the previous year.

Despite this, Pret reported a 36 percent increase in like-for-like sales to £98 million for the year.

At the same time, total revenue decreased by 4.2 percent to £868.4 million compared to the previous year.

Sales on a like-for-like basis rose by 2.8 percent thanks to an 11 percent expansion to 717 stores as part of the company's international growth.

Pret intends to continue expanding in the US, particularly in city centers and transport hubs.

Management Quotes

Christou, CEO of Pret, noted:

“2024 was yet another growth year for Pret, where we made informed decisions to protect sales, despite strong pressures on the hospitality industry.'

“Going forward, our primary goal will be to stimulate transactions and sustainable growth by offering excellent value to Pret customers.'

“We will focus on increasing Pret's market share in the UK and internationally, prioritizing city centers and transport hubs, supported by the experience and expertise of additional world-class board members and a strengthened management team.”

Pret opened its first store in London in 1986 and now employs 12,500 people in over 700 locations across 21 countries.

Christou, who has led the company since 2019, began his career as a manager's assistant at the central London branch at the age of 22.

The son of a taxi driver, he is now 45 years old, grew up in Tooting, South London, and earns over £400,000 a year.

JAB Holding, which also owns Krispy Kreme and Keurig Dr Pepper, purchased Pret for £1.5 billion in 2018.

However, the pandemic caused significant losses, leading to a £343 million loss in 2020, as key customers—office workers and travelers—stayed home.

To win them back, Pret launched discounted food and coffee subscription programs, which helped increase sales by 20 percent in 2023.

Pret A Manger is trying to adapt to changes in the market and actively seeks new growth opportunities, considering shifts in consumer preferences. The introduction of promotions for set lunches could mark a significant step in the company's recovery strategy, also indicating a desire to compete with powerful players in the food market.

Overall, this approach may help maintain consumer interest in the Pret brand and recover sales after challenging financial periods related to the pandemic and current industry challenges. Observing market reactions, the company hopes to solidify its position in Ukraine and beyond.