Pret A Manger is testing a range of new meal deals at its UK stores across breakfast and lunchtime day parts.
The food-to-go chain said the trial would be held from 16 September at 70 selected sites with a view on rolling out permanent options at the start of next year. It noted it had already launched a meal deal in France, which was said to be performing well.
Aimed at providing premium products at affordable prices, the seven different meal deals getting tested in the UK include a croissant and coffee combo; a crisps and bread-based sandwich pairing; and choices of a lunch main, a snack, and a drink.
“We’re going to test out the price points,” commented Pret CEO Pano Christou. “The difference with the Pret meal to those others – they’re buying a product that’s been made hundreds of miles away, many days ago.
“Our products have been made meters away, minutes ago. So, the freshness of our ingredients is unparalleled to those others,” he added.
Things are heating up in the meal deal world as Greggs also recently rolled out its own version of the £5 lunchtime meal deal.
Pret said that delivering value-driven options for customers would stay core to its offer. The repositioning of its subscription service Club Pret, which grants a 50% discount on up to five barista-prepared drinks per day for only £5 per month, has continued to attract its most loyal customers whilst enabling the business to absorb around £25m of inflation in labour, food, and operational costs.
The meal deal announcement comes at a time when Pret reported worldwide sales across company-owned and franchise shops had reached £1.2bn for the year ended 2 January 2025. This represented 10% growth compared to the previous term, with like-for-like sales increasing by 2.8%.
Adjusted EBITDA leapt 36% to £97.5m (2023: £72m), driven by higher sales and strong cost controls at shops and support centres. However, this excludes a non-cash goodwill impairment charge of £552.9m which saw it record an operating loss of £451.5m for the year.
An impairment charge is an accounting entry used by businesses to write off worthless goodwill or to report a reduction in the value of goodwill. Pret was acquired by investment firm JAB Holding for £1.5bn in 2018, creating £912m of transaction goodwill on the company’s balance sheet that year.
Pret’s management said it considers 2024 to be the first year since the start of Covid with consistent trading data on which to base future forecasts, and noted that the impairment takes into account the currently uncertain global macro-economic environment and results in part from the use of a higher discount rate than was used in previous calculations. Media reports have stated that Pret is currently sounding out new investors ahead of a proposed initial public offering (IPO).
Meanwhile, the brand has continued its international expansion and achieved 11% net shop growth to end the financial year with 717 globally. Pret’s priority will now be on delivering sustainable growth by improving share in its home market of the UK, and expanding in the US, with a particular focus on travel hubs and city centres.
In June, it began trialling a more spacious shop format featuring a new menu that includes made-to-order bakery items such as hot ciabattas, sourdough toasties, and stuffed croissants at its new Maidenhead and Broughty Ferry sites.
The company recently strengthened it’s board with the appointment of chairman José Cil, and said it would be bringing in further world-class talent to bolster a more streamlined management team. Last week, it was revealed that Pret’s UK & Europe MD Clare Clough was taking a career break after 15 years in various senior roles at the brand.
”Over the years, Clare has been instrumental in establishing Pret’s international presence, developing Pret’s Allergy Plan, leading the UK business through the Covid-19 pandemic and more recently serving as managing director for Europe,” said a spokesperson for the company. “We’d like to thank Clare for her enormous contribution in making Pret what it is today and wish her the very best in her next endeavour.”
Christou is to take the reins of the European market whilst the firm prepares to announce a successor.
Pret said the UK will see further investment in food innovation, following the successful introduction of Super Plates – nutrient-rich premium salads – in July. It has brought back its popular limited-edition Lobster Roll at stores nationwide for four weeks from today (9 September), priced at £8.95 and featuring 50g of wild-caught Atlantic lobster, zesty lemon mayo, cos lettuce and cucumber, finished with a sprinkle of chilli salt and chives.
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