Pret a Manger's U.S. expansion sees cafe chain's sales hit $1.5 billion

By Louis Goss

Pret a Manger has seen its sales hit highs of more than GBP1 billion ($1.3 billion) for the first time in its four decade history.

The London headquartered coffee seller said its sales were boosted to GBP1.1 billion in 2023 by its ongoing international expansion which has now seen it open more than 690 shops in 18 markets worldwide.

The popular cafe chain, which opened its first store in the London suburb of Hampstead in 1986, said one quarter of its sales are now generated outside Britain.

"The fact that GBP1 in every GBP4 is now spent outside the UK is both an achievement and an opportunity for our business," Pret a Manger CEO Pano Christou said.

Pret a Manger currently has 65 stores across the U.S. including 43 in New York City after it first entered America in 2000.

The British firm's first U.S. store on New York's Broad Street became Pret a Manger's first cafe outside of London.

Pret a Manger now generates higher sales in New York than in any other city apart from London, where it has 272 stores.

In its half year results for the six months ending on Jun. 30, Pret a Manger said its overall sales had increased 10% year-on-year to GBP569 million ($753 million).

Pret a Manger said its surging sales were mainly driven by the opening of new stores as it also achieved 3% higher sales in its existing outlets.

The company said it had made an effort to keep its prices low in the face of surging inflation, including reintroducing its 99 pence filter coffee offering in Jul. 2024.

The reintroduction of Pret a Manger's GBP0.99 coffee drove a 60% increase in sales of filter coffee from Jun. to Aug., the company said.

The cafe chain had previously faced backlash earlier this year over the rising prices of its coffee and sandwiches.

The London firm had previously hiked the price of its filter coffee up to GBP1.50 in 2022 in a bid to get ahead of inflation.

In July, Pret a Manger also outlined plans to amend its subscription offer, which previously let subscribers order up to five free coffees a day for GBP30 a month.

The cafe company said its new subscription offer would instead let subscribers order five half-price coffees a day for GBP10 a month.

Pret a Manger said 2023 had seen it open more shops worldwide than in any other year in its history on the back of its entry into India in April 2023.

The launch of the coffee company's Indian business saw it open 15 shops across Mumbai and Delhi over a 12 month period.

-Louis Goss

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09-17-24 0550ET

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