Pret to axe another 400 jobs amid ‘setback’ in Covid recovery

The coffee and food-to-go specialist said it will consult staff on “a number of adjustments” to its UK business.

The changes are likely to result in the loss of 400 store-based roles, the majority of which are likely to be in London and its airport stores, Retail Week understands.

Pret will also shut six more stores across the capital, though it has not yet named the specific locations of those shops.

Pret said the cuts were a “reflection of the worsening Covid-19 situation [and] expected challenges over the coming six months”.

The high street chain has already made significant changes to its business in the wake of the pandemic. The health emergency has battered sales in Pret’s city-centre locations at a time when people have been working from home rather than in offices.

Just two months ago, Pret revealed it was cutting 2,800 roles and closing 30 of its branches after sales in its core UK business plummeted 60% year on year.

At the time of that announcement in August, Pret said weekly UK sales were “averaging around £5m – the level they were at in August 2010” when the business was much smaller.

The firm is trying several new initiatives in a bid to grow new revenue streams, including launching a retail range of coffees for sale on Amazon; striking partnerships with Deliveroo, Just Eat and Uber Eats; and rolling out a coffee subscription service in a bid to woo customers back to its shops.

Members of the YourPret Barista scheme, which launched last month, pay £20 a month for up to five hot drinks, smoothies or frappés a day. Sources close to the business said the subscription service had gotten off to a strong start as Pret tries to mount a recovery.

The business said today it had registered “consistent sales growth” since April but admitted progress had slowed since the end of September as Covid-19 infection rates increased across the UK.

Pret described that as a “setback” and insisted the fresh wave of job cuts and store closures would provide the business with headroom “to continue to adapt through the winter”.

Pret a Manger UK boss Clare Clough said: “It’s absolutely right that we take steps to stop the spread of the virus and tackle the new wave of infections. Sadly, the result of the rise in infections and the necessary shift in public health guidance mean that our recovery has slowed.

“We’ve said all along that it’s up to Pret to decide our own future and that we must adapt to the new situation we find ourselves in. That’s why we have to make these further changes as we continue to transform our business model and prepare for the six months ahead.

“We are doing everything we can to support our team members and to prevent further job losses at Pret.”