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The owner of Pret A Manger has recently explored bringing in new investors to the sandwich and coffee chain ahead of a potential initial public offering.
JAB Holding, the European investment group that acquired Pret for £1.5bn in 2018, has in recent months engaged advisers to explore various options for the business ahead of a potential listing, including a stake sale, said people with direct knowledge of the matter.
JAB said it is not “currently” considering a stake sale in Pret. It added: “As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor.”
JAB, which has not previously commented on any IPO plans for Pret, last month appointed former Restaurant Brands International chief executive José Cil as chair of Pret and its other restaurant chains.
Pret, which also sells soups, salads and breakfasts, has weathered a number of shocks under JAB’s ownership. The pandemic pushed the chain to a £343mn operating loss in 2020 as its primary customers — office workers and commuters — were kept at home.
The business is led by Pano Christou, who started as an assistant manager in a central London Pret outlet, aged just 22. He climbed the ranks over the next two decades before JAB promoted him to chief executive in 2019.
Since the pandemic, which forced Pret to close dozens of outlets and cut more than 3,000 jobs, its trading figures have become a barometer of sorts for the number of people returning to the office.
The chain has introduced various subscription services to lure back customers after the pandemic, but was hit with a backlash after doubling the price of a monthly coffee subscription last year to £10. Pret eventually backtracked from the plan.
Pret also became a lightning rod for criticism when it raised prices aggressively after being hit by a wave of post-pandemic inflation.
Despite a turbulent time in its home market — where labour costs have been rising substantially — Pret has been pushing ahead with international expansion.
While most of its 700 outlets are in the UK, a quarter of Pret’s sales are now made in other countries. The US and France are the company’s biggest international markets and it also has outlets in Canada, India, Greece and Spain.
Pret’s sales jumped by a fifth to £1.1bn in 2023, while adjusted core profit increased 12 per cent to £166mn, mainly off the back of international openings.
The company’s outstanding loans and borrowings stood at £740mn at the end of 2023, although Pret raised £250mn of new capital last year to reduce its debt load.
The decision to seek new investors comes as JAB, which also owns Krispy Kreme and Keurig Dr Pepper, shifts focus from the consumer sector and diversifies into the insurance and asset management industry.
JAB, which primarily manages the wealth of Germany’s secretive Reimann family, has transitioned power to a new generation of leadership, after its previous managers embarked on a £50bn deal spree principally targeting the consumer sector.
