Pret A Manger has struck a deal to open cafes in Israel as part of an international expansion designed to double its business.
(Bloomberg) —
Pret A Manger has struck a deal to open cafes in Israel as part of an international expansion designed to double its business.
The maker of “posh cheddar and pickle” baguettes, which has more than 550 shops in more than 10 countries, inked an initial agreement with multinational retailer Fox Group and restaurant operator Yarzin Sella Group to launch the brand in the Middle Eastern state.
The chain, owned by major consumer sector investor JAB Holding since 2018, struggled during the pandemic when office workers — its core clientele — worked from home. After two years of losses, the chain returned to profit in March, spurred on by its new coffee subscription model.
In the first six months of 2022, its sales rose 230% to £358 million ($431 million) compared to a year earlier.
JAB is a long-term investor controlled by the Reimann family and owns beauty group Coty and handbag maker Bally. It listed its coffee business JDE Peet’s in 2020. However its US coffee shop chain Panera abandoned plans to go public via a special purpose acquisition company earlier this year.
Launching in Israel is part of Pret’s plan to double the size of its business within five years, including a move into new markets such as India, Spain and Portugal. It has recently entered Canada and Ireland, and already operates in countries ranging from the US to Hong Kong and Dubai.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
