JAB-owned, UK-based, coffee and food-to-go chain Pret A Manger is making significant strides in its international expansion plans, with a particular focus on the Canadian market. The company, which was founded in London in 1986, has recently signed a ten-year development agreement with fast-growing “burgers and root beer” Canadian restaurant chain A&W to expand its presence across the country.
Pret A Manger first entered the Canadian market in July 2022, opening several concession sites within A&W restaurants in Vancouver and Toronto. The success of these initial ventures led to the launch of the company's first standalone store in Toronto in January 2024. Jorrie Bruffett, President of Pret A Manger North America, stated, "This expansion into Canada is a natural next step for Pret globally. We are committed to bringing the Pret brand to more people, wherever they are and after the warm welcome from locals at our Pret pop-ups in Canada, we're excited to continue expanding our footprint and menu offerings to more Canadians."
Under the terms of the development agreement, A&W Food Services of Canada, which holds the sole master franchisor rights to the Pret brand in Canada, will open further standalone Pret A Manger stores over the next decade. Additionally, the company will commence a national rollout of Pret's coffee in A&W restaurants starting from the third quarter of 2024. Sales of Pret products within A&W restaurants will be subject to a 3% royalty paid by A&W Food Services of Canada to the A&W Revenue Royalties Income Fund.
The Canadian expansion is part of Pret A Manger's broader international growth strategy. The company currently operates more than 650 outlets across 18 markets worldwide and is expected to open up to 150 international stores in 2024 alone. In April 2024, Pret appointed JAB Partner Konrad Meyer, who was influential in the 2018 Pret acquisition by JAB Holdings, as its new Chairman to accelerate its global expansion plans. This will include debuts in South Africa and Israel later this year.
Although Pret A Manger has experienced a downturn in its cult favorite status with consumers over the past few years, it is a juggernaut of global expansion at the moment, announcing in 2021 it planned to double the business size in five years. Pret A Manger's success can be attributed to its focus on high-quality, handmade food and organic coffee. As the company's website states, "Pret's sandwiches, salads and wraps are handmade every day in kitchens using ingredients while its coffees, teas and hot chocolates are claimed to be organic." This commitment to quality and freshness has helped the company establish a loyal customer base in markets around the world—even if it is criticized by many (particularly British) consumers who have a lot to say about the “hyper-pretflation” of steeply-increased prices at the chain’s stores.
As Pret A Manger continues to expand its global footprint, the Canadian market represents a significant opportunity for growth. With its partnership with A&W and plans for standalone stores and coffee distribution, the company is well-positioned to capture a share of the growing demand for high-quality, convenient food and beverage options in Canada. As Pano Christou, Chief Executive Officer at Pret A Manger, said, “We look forward to continuing to serve our freshly made food and organic coffees to more Canadians and further growing our brand in new markets.”