“We cannot defy gravity”: Pret A Manger to permanently close 30 shops due to “significant” impact of COVID-19
The chain is expected to cut 1,000 jobs.
Thirty of Pret A Manger’s outlets across the UK will be closed permanently in the second half of 2020, as part of a series of steps to adjust its business model due to “significant” losses following the outbreak of COVID-19.
The business was able to reopen over 300 UK shops but says it is also experiencing a much slower recovery, with sales down 74% year on year.
Other reports say 1,000 jobs are expected to be cut as a result of the sandwich and coffee chain’s restructuring. The company employs 13,000 shop staff globally, including 8,000 in the UK.
A consultation is expected to take place with shop teams and impacted Support Centre teams this week. No final decisions will be made until the said consultation is complete.
Aside from the closures and planned reduction, Pret will be starting a sale process for the lease of its main support office in London, Victoria. Talks with landlords across the Pret estate over a “more sustainable leasehold model” are also ongoing. Pret previously engaged with Alvarez & Marsal and CWM to complete a full estate review and resizing programme.
Pret will also launch an evening delivery menu to be trialled from seven shops and a new hub kitchen in North London.
“When the coronavirus crisis hit, we said that our priority was to protect our people, our customers, and of course Pret. We confirmed it was our intention to do everything we could to save jobs,” Pret CEO Pano Christou said in a media release. “Although we were able to do that through the lockdown, thanks in particular to the Government’s vital support, we cannot defy gravity and continue with the business model we had before the pandemic. That is why we have adapted our business and found new ways to reach our customers.
“It’s a sad day for the whole Pret family, and I’m devastated that we will be losing so many employees. These decisions are not a reflection on anyone’s work or commitment. But we must make these changes to succeed in the new retail environment,” he added.
