Pret A Manger

Group 6

Date : 07-07-2015.

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Contents
Introduction................................................................................................................ 3
Situation Analysis:...................................................................................................... 3
Customer Satisfaction:............................................................................................ 3
Competition Faced:.................................................................................................. 4
Competitive edge................................................................................................. 4
Opportunities in Market place:................................................................................4
Delivery system................................................................................................... 4
Drive thru............................................................................................................. 4
Problems Faced by Protagonist...................................................................................4
Solution to the Problem and Implementation:............................................................5
Group Members.......................................................................................................... 6
Jitendra Bherulal Jain - DM 16219...........................................................................6
Ankil Kumar Sanghavi DM 16106..........................................................................6
Nitish Nijhawan DM 16232.................................................................................... 6
Shruti Balabhadra DM 16144................................................................................6
Shubham Agarwal - DM 16245................................................................................6

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Introduction
Pret a Manger was founded by two college friends Julian Metcalfe and
Sinclair Beecham in 1986.They opened their first shop on Victoria Street and
after a decade of successful growth the company consisted of almost 100
shops and now Pret holds around 163 shops only in London. Pret is known for
its food which mainly was sandwiches made every day and for its attentive
service.
Pret a Manger revenue has shown an incredible growth from 2006 to 2010
from 177.3 million euros to 281.6 million euros. The EBIT has also improved a
lot from 14.8 million to 32 million euros.
Clive Schlee became the CEO of Pret a Manger in 2003 prior to that he had at a
Hong-Kong based conglomerate and also ran Pizza hut, Sizzler and Taco Bell
franchises in Australia and North America.

Situation Analysis:
Customer Satisfaction:

Pret a Manger has always given its customers utmost priority. Their
service is customer oriented. This they achieve by positive and unique
interaction with them through their employees. The company is aimed
at creating a friendly, happy, sincere, genuine and enthusiastic
environment for the customers.
Further, customers are encouraged to give feedback on every aspect
right from a change in employee to a change in the menu. Their voices
are respected to such an extent that they are given the freedom to
reach out to higher executives and even the companys Managing
Director and CEO. Any rebellion or request on the part of the customers
is taken into consideration and acted upon with immediate effect. The
company believes that customer is their priority and anything else
comes secondary.
They make sure that their stores are so placed that they are close and
accessible to their customers. Customer retention and loyalty is
important to them and they make sure that it is achieved through
various ways like offering freebies like coffee or pastries.
As we have seen in the case, even a big expansion decision like twin
shops is heavily affected by customers reaction and outrage with no
decision being taken without their consent. So much so that they
stopped their twin shop entity on receiving an outrage by the

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customers. Pret goes to each extend to make sure that it serves the
freshest of ingredients to its customers.
Lastly they are committed to three objectives: quality, speed and
genuineness of service to ensure maximum customer satisfaction.

Competition Faced:

The main competitor of PRET are Super markets like Tesco and Sainsbury.
Retailers like Waitrose and Marks & Spencer Simply Food, who are claiming to
serve high quality food, are the other competitor of PRET.
Several Coffee shop like Star Bucks are competing them too.
But most important competitor is EAT who are famous for its pre-packed
sandwich shop

Competitive edge

They have best quality to serve the customer.

Customers experience best service offered by the PRET.
For better service the director use to say: "Quality, Speed and genuineness of
service are our number one advantage"
They have all their stores at prime location and that is the advantage of PRET.
PERT enjoys a monopoly by the fact that use natural ingredients unlike their
competitors.
Their 50 % of ingredients are from UK and 80% of ingredients are from
European Union.
Even though BERT are using natural ingredients, they don't want to
compromise in taste. They had said " There is battle for nutrition and health,
but you cannot sacrificed taste"
At some of the place they have outlets after two or three blocks and because
of that customer can find their outlets at each and every place.

Opportunities in Market place:

Delivery system
Quality, speed and genuineness being the core strength of Prets offerings, a
delivery system can be seen as a huge opportunity which may be cashed in. Since
Pret A Shop located at every nook and corner, it shall give an advantage to provide
similar kind of speedy delivery services to the customers. Here, customers can be
either office goers busy at their desk or residents near by tired to come all the way
to the shop.

Drive thru
Saving the real estate space to a larger extent with no requirement to provide dinein facilities, this concept of drive thru shall save time for the customers to get down

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from their vehicle, minimum staff support shall be required to service at this type of
setup with the same customer service.

Problems Faced by Protagonist

The Pret A Manger model requires enough space to accommodate a kitchen

along with the shop floor. It was becoming difficult to find such big spaces in
posh locations. So the company had to go with the strategy of twin shops as
there was only enough space to accommodate the shop floor in a corner shop
in good location.With the concept of twin shops in motion, despite of some
advantages there started to arise some problems.
Some customers were apprehensive to the fact that their food was being
brought from an external kitchen. They were of the opinion that this food
cannot be branded to be completely fresh.
Another problem was related to a psychological belief at Pret. The belief that
the person making the food develops a connection to it, and hence will be
more involved in its sales. The twin shop concept opposes this belief, as the
food is made by a different person than who will sell it. Hence the
psychological connection with the food is lost.
On the operational front, there arose a problem of difficulty in maintaining a
full selection of sandwiches at all times. Despite a high number of trolley
drops, some items ran out of stock. This was mainly due to the fact that Pert
employees were accustomed to replenishing sandwiches from their kitchen
on a regular basis. The external kitchen made it difficult to carry on the
replenishment in the same way.
Also, the goal of realising a 15% store growth annually was adding pressure
on Pert to come up with new strategies to achieve it.

Solution to the Problem and Implementation:

While going through the benefits associated with launching of twin shops, it
serves comparatively much better than any other alternative for achieving a
growth rate of 15% in terms of outlets. It shall also increase the sense of
responsibility associated towards managing of the twin shops ( kitchen
located 1 or 2 blocks away from the shop ) by the manager.
The offerings from such twin shops can be rebranded as from the shops own
kitchen. Moreover it is required to achieve a great level of operational
efficiency to serve the orders fresh for the customers. So, a quick delivery
system should be always at handy to move in the orders for the customers
from the kitchen located a block away. This can be done by enhancing the
delivery vehicle and system as well as further improvising the fabrication
process of various foods.

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In addition to the above, to increase the openings, drive thru and delivery
system can also be taken as option as our basic aim is to increase our
presence and serve more and more customers.

Group Members
Jitendra Bherulal Jain - DM 16219
Ankil Kumar Sanghavi DM 16106
Nitish Nijhawan DM 16232
Shruti Balabhadra DM 16144
Shubham Agarwal - DM 16245

Group - 6
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