Pret a Manger back in profit ahead of all-Ireland expansion

Pret a Manger has returned to profitability after suffering another year of losses in 2021 amid lockdowns and Covid restrictions.

The group, which is planning to open its first shops in Northern Ireland, recorded a 17% rise in revenues to £461.5m last year as restrictions lifted and workers returned to offices.

However it remained in the red with operating losses of £225.9 million last year, an improvement on the £343m loss seen in 2020 at the height of the pandemic.

It said its recovery has “continued and accelerated” in 2022, with half-year revenues up 230 per cent to £357.8m, helping it return to profitability in March and becoming cash flow positive since May.

It comes less than three months after Pret announced plans to launch 20 shops across the island of Ireland over the next decade. The first will open in Dublin’s Dawson Street this summer.

Pret’s recovery comes it boosted its presence outside London – where trade was hit particularly hard by the switch to working from home – with sales growth faster outside the capital.

Two-thirds of its UK shop portfolio is now outside London’s Square Mile, with 36 per cent of UK shops in regional cities and towns, while its online sales jumped by 37% cent in 2021.

Pret has also started ramping up its overseas expansion, recently announcing four new franchise partnerships – including a deal last month with Reliance Brands to build the chain across India.

Chief executive Pano Christou said: “Two years ago, we said we wanted to bring Pret to more people. During the first half of this year, we not only delivered on that pledge, but we also grew fastest in some of the places where we only had a handful of Pret shops before.”

The firm currently has 11,500 staff, including 8,700 in the UK alone.

Since announcing its five-year growth plan last September, it has opened another 27 shops in the UK, taking its estate to 442, while it now has 558 shops internationally.