Pret A Manger has ushered one of its founders and longest-serving directors back to the company in a management shake-up as it seeks to bear down on its steep debt pile.
The London-based sandwich chain has brought back Larry Billett, Pret’s former Chairman from 2003 to 2011, alongside Sinclair Beecham who co-founded the business in 1983 with Julian Metcalfe. Billett will join the board as a non-executive director while Beecham will act as an adviser.
Meanwhile, Olivier Goudet, who has served as Pret’s chairman since 2018, will step down and be replaced by current board member Konrad Meyer.
In a statement Meyer said: “As a final step in leaving the pandemic behind, we are implementing plans to reduce debt.
“With Larry’s return to the Board, and Sinclair’s continued support, we are bringing together the brilliance of Pret’s past with the promise of Pret’s future.”
Pret had racked up loans and borrowings of £698 million by the end of 2022, its latest accounts show, as pandemic closures led to steep losses at the firm.
Much of the debt has been agreed using 3-month SONIA rates set by the Bank of England, which has seen the interest rates on the debt rise to nearly 9%.
The firm has also been best by criticism over rises in the price of its sandwiches, which the Financial Times has described as “bloody expensive” while co-founder Julian Metcalfe has said the chain’s customers had been “let down” by problems with its loyalty app and “chaotic” management.
Last year, Pret faced a backlash from customers after charging £7.15 for a baguette at a branch in High Street Kensington station, with the eat-in price tag on the Posh Cheddar and Pickle product slammed as a “rip-off” by furious diners.
The sandwich costs £7.15 if customers wish to dine-in - but falls to £5.95 for the takeout option. Pret A Manger says items cost more in transport hubs due to higher operational costs. Most customers can buy the baguette to take away for £4.99 in non-station outlets, they added.
In an apparent crackdown on subscribers sharing their benefits with others, Pret last month launched a new system for its Club Pret members.
Those who pay for the £30 membership will have to log in through Pret’s app every time they want to claim a free coffee, smoothie or food discount.
Pret said the move “will deliver a more complete digital experience, so that the Pret App becomes the main digital touchpoint for our customers. We encourage any customers that need further support to contact our customer service team.”
