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Pret a Manger plans to expand outside London and other major city centers as a large number of office workers continue to work from home, with plans to open 100 licensed stores, as well as around 100 of its own outlets.
The coffee and sandwich chain has been hit hard by the Covid-19 pandemic as outlets in the city center suffer from an absence of travelers and tourists. But the company said that in some regional cities its stores were busier than they had ever been.
The move comes as Brett – which last week backed away from plans to cut employee bonuses after workers threatened to strike – has come under severe financial pressure during the pandemic. The company abandoned dividend payments to shareholders, and in April warned of “material doubts” about whether it could continue as a going concern.
The company said it was in talks with potential franchise partners, which could expand its reach beyond London and other major cities across the UK. It has plans to open about 100 franchise outlets – restaurants that will be run by independent operators on its behalf – over the next two to three years.
It also proposes opening about 100 additional stores of its own over the next three years.
The move follows the launch of this year’s partnership with Tesco to pilot Pret stores within Tesco’s branches in Kensington in West London, Peterborough, and other locations as part of an overhaul of its post-pandemic business model.
A Brit spokesperson said: “In some areas such as regional towns and parts of northern England, our stores are more crowded than they have ever been.
“We’re looking forward to establishing new partnerships with franchise partners to bring Pret to more people in cities and travel hubs across the UK, and are also looking at places where we can open more stores we directly operate.”
Premature workers, the vast majority of whom receive basic salaries at the statutory minimum of £8.91 an hour, have threatened to hold up tools over proposed wage cuts. On Thursday, after the planned changes sparked outrage on social media, the company said a service bonus linked to performance judged by a mystery shopper would be refunded to £1 an hour. However, the chain did not overturn a decision to stop paying for breaks.
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