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Pret A Manger navigates post-pandemic consumer trends
Pret A Manger's chief executive, Pano Christou, has observed significant shifts in consumer behavior, including a growing preference for healthier options, flexible work patterns, and a strong demand for value amid economic uncertainty.
Healthier choices and evolving lunch habits
Consumers are increasingly opting for nutrient-rich meals, with a noticeable rise in demand for salads and protein-packed options. Despite this trend, bread-based products remain Pret's top sellers, accounting for over half of its 20 best-selling items last year. However, the chain's premium "Super Plates" salad range-priced up to £12.95-has outperformed expectations, selling 40% more than anticipated.
Christou noted that salads are becoming a popular evening meal, with more sold at the end of the day than traditional sandwiches or baguettes. He attributed this shift to consumers viewing salads as a "meaningful staple" for dinner.
The rise of weight-loss drugs has prompted some food chains to reconsider portion sizes, but Christou stated it is too early to assess their impact on Pret's business.
Flexible work patterns reshape demand
Pret's stores, concentrated in city centers and transport hubs, have seen a gradual return to office work, though Fridays remain quieter due to hybrid working trends. Christou does not expect a full return to five-day office weeks but emphasized the importance of human connection for newer employees.
Retail analyst Jonathan De Mello highlighted that while Pret has expanded into residential areas post-pandemic, its reliance on city-center locations continues to affect demand. The company is adjusting its store locations to reflect changing commuting patterns, though progress has been slow.
Subscription model and pricing challenges
Pret's subscription service, initially launched during the pandemic for £20 a month, has undergone multiple revisions. The current version costs £5 a month and offers half-price drinks, which Pret claims remains the best deal on the market. Christou reported a 25% increase in subscribers over the past year.
Despite this, Pret faces criticism for reducing the generosity of its subscription perks. Competitors like Costa offer free loyalty schemes and meal deals, such as a £6.49 lunchtime combo of a hot drink and toastie. Pret has been testing meal deals in select stores to gauge consumer response.
Christou emphasized that value does not always mean the cheapest option, pointing to the success of the premium salad range as evidence of consumers' willingness to pay for quality.
Economic pressures and cost management
Pret's 2024 financial results showed a 2.8% increase in like-for-like sales but a significant loss due to a £500 million writedown by owner JAB, reflecting economic uncertainty and higher costs from the Autumn Budget. The company also faced £20 million in additional expenses from food price inflation but chose not to pass these costs onto customers.
Recent fuel price volatility, linked to geopolitical tensions, has further strained Pret's supply chain, with daily deliveries to its 550 UK stores. Christou stated that while Pret has no immediate plans to raise prices, prolonged disruption could force adjustments to protect customers.
"We are looking at how we can do everything within our control to mitigate costs and protect our customers," Christou said.
Future outlook
Pret continues to balance consumer demand for value with the need to adapt to evolving work and dietary habits. While the chain remains optimistic about long-term trends, economic pressures and shifting commuter patterns present ongoing challenges.
