Pret A Manger signs new joint venture to triple US footprint in five years

The UK-based espresso and food-to-go chain says current franchisee Dallas International will enlarge, improve and diversify its US property, which these days accommodates 58 shops

Pret A Manger these days operates 58 US shops, 40 of which might be in prime footfall places in Manhattan | Photo credit: Pret A Manger

Pret A Manger is looking for to triple its US footprint over the following five years as a part of a new joint venture with current franchisee Dallas International. 

 

As a part of the settlement, Dallas International will think regulate of 52 Pret A Manger shops in New York, Pennsylvania and Washington. The deal is anticipated to entire in February 2024 and can grant Dallas International unique rights to open new shops in the ones markets. 

Pret A Manger these days operates 58 US shops, 40 of which might be in prime footfall places in Manhattan.  

As smartly as diversifying Pret’s US footprint to suburban places, Dallas International may also perform an in depth shop renovation programme and open the chain’s first drive-thru shops. 

“We have huge ambitions for Pret to become a more globally recognised brand that is working in partnership with our franchisees to unlock significant growth in new markets. This approach has driven significant growth in Europe and Asia and enabled Pret to track ahead of its mid-term global growth target to double the size of the business by 2026. We look forward to replicating these results in the US, building upon our already successful partnership with Dallas as we jointly pursue our next phase of growth,” mentioned Pano Christou, CEO, Pret A Manger. 

Pret A Manger started running with Dallas Holdings in the United Kingdom in November 2021 ahead of coming into a US partnership in December 2022 to enlarge its presence in New York and California. 

Speaking to Reuters, Christou mentioned Pret A Manger may cross even additional in the US and achieve up to 300 shops through replicating the chain’s UK enlargement technique, which has taken with opening shops in suburban and delivery hub places. 

 

In a bid to revive its UK trade all through pandemic buying and selling restrictions, Pret A Manger refocused its brick-and-mortar trade to neighbourhood places to cater to higher hybrid home-and-office running. 

The transfer seems to have paid off, with Pret A Manger’s 450-store UK trade rising 10 occasions sooner outdoor of city centres, in accordance to Christou. A focal point on virtual transactions, together with a new loyalty scheme and a hit in-store subscription additionally contributed to Pret returning to profitability in mid-2022.  

Christou added that client call for for Pret A Manger in the US is rising, with the release of its Club Pret meals and beverage subscription and app-enabled Pret Pick-Up programme key drivers of in-store site visitors. The espresso and food-to-go chain completed 10% US gross sales enlargement in the five-months ended 30 September 2023. 

Alongside its company-owned and Dallas International authorized shops, Pret A Manger may be exploring new franchise alternatives in Texas and Florida. 

World Coffee Portal analysis presentations the full branded US espresso store marketplace completed tough 4% outlet enlargement during the last 365 days to achieve 40,062 shops. The marketplace, now 7% above its pre-pandemic dimension, is forecast to exceed 41,300 shops in 2024 and 45,200 through September 2028.