In a significant management shake-up, Pret A Manger has reappointed two key figures from its past: co-founder Sinclair Beecham and former Chairman Larry Billett. This move is part of a strategic effort to address the company’s substantial debt burden, which had accumulated to £698 million by the end of 2022. Billett will resume his role as a non-executive director, while Beecham will serve as an adviser. Olivier Goudet, who has held the position of chairman since 2018, will step down and be succeeded by current board member Konrad Meyer. The company’s recent financial struggles have been attributed to pandemic-related closures, resulting in mounting losses. The majority of its debt has been acquired using 3-month SONIA rates set by the Bank of England, leading to a significant increase in interest rates on the debt, currently hovering around 9%. Pret A Manger has also faced criticism for price increases on its sandwiches, with the Financial Times describing them as “bloody expensive.” Co-founder Julian Metcalfe has acknowledged that the chain’s customers have been “let down” by technical issues with its loyalty app and perceived “chaotic” management. Additionally, the company faced backlash last year for charging £7.15 for a baguette at a branch in High Street Kensington station, with the eat-in price tag for the Posh Cheddar and Pickle product being labeled a “rip-off” by disgruntled customers. However, Pret A Manger clarified that the higher price at transport hubs is due to increased operational costs, and customers can purchase the same baguette for £4.99 in non-station outlets. In an effort to curb the sharing of benefits among subscribers, Pret A Manger recently introduced a new system for its Club Pret members. The £30 membership now requires members to log in through the Pret app each time they claim a free coffee, smoothie, or food discount. According to Pret A Manger, this change is intended to enhance the digital experience and make the app the primary digital touchpoint for customers.
Pret A Manger Appoints Co-Founder Sinclair Beecham and Former Chairman Larry Billett in Management Reshuffle
