Source: Sharecast
Luxembourg-based 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, the Financial Times reported, citing unnamed sources with direct knowledge of the matter.
JAB said it was not “currently” considering a stake sale in Pret.“As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor,” it told the newspaper in what is the first mention of a listing associated with the chain.
JAB – which also owns Krispy Kreme and Keurig Dr Pepper – announced last month it had hired hospitality industry stalwart Jose Cil as chairman of Pret’s board.
Cil was most recently chief executive of Burger King owner Restaurant Brands International, which also owns chains including Popeyes.
The Covid pandemic forced Pret to close a large number of outlets and cut more than 3,000 jobs. It has tried various methods to recoup revenue as workers largely continue to operate from home.
Pret 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. It eventually backtracked from the plan.
It also hiked prices to eye-watering levels, sparking a wave of criticism during post-pandemic spiralling inflation that led to accusations from consumers of "greedflation" as companies across the board lifted profits while consumers struggled.
The chain also removed a 20% discount on food for subscribers to end dual pricing – “something we never really got comfortable with”, it said at the time.
The firm opened its first shop in London in 1986, where the company remains headquartered and now has 700 shops worldwide with around 12,500 employees across 21 markets.
The decision to seek new investors comes as JAB shifts focus from the consumer sector and diversifies into the insurance and asset management industry.
Reporting by Frank Prenesti for Sharecast.com