Less Bread and WFH Fridays – What Pret Boss Knows About Our Habits

Less bread and WFH Fridays – The CEO of Pret A Manger, Pano Christou, has noted a shift in consumer habits, highlighting a notable decrease in bread consumption and the growing trend of working from home on Fridays. These insights, shared during the BBC’s Big Boss Interview podcast, reveal how everyday choices are shaping the food and work landscape. From mealtime preferences to office attendance, Christou suggests that people are increasingly seeking balance between health, convenience, and adaptability in their routines.

Adapting to Value and Health Priorities

According to Christou, the demand for affordable options has become a central factor in how consumers approach their purchases. While there is a rising interest in healthier choices like protein-rich and fibre-loaded meals, many still opt for staple items that offer familiar comfort. This duality has led Pret to reassess its pricing strategy, particularly as it contends with a reputation for being pricier than its competitors on the High Street.

“Cutting across our changing lunch and commuting habits is an overriding desire for good value,” Christou explains. “Yet Pret has struggled to shake off a reputation as being expensive compared to other chains.”

The company’s response to this challenge has been its evolving subscription model, designed to appeal to customers looking for predictable savings. Initially launched during the pandemic to boost footfall, the subscription model offered £20 a month for up to five free drinks daily and discounted food. However, over the next three years, the price saw two increases before being revamped. The current version, at £5 a month, provides up to five half-price drinks a day, a change Christou claims still offers the best deal available.

Christou acknowledges that this adjustment has drawn criticism for reducing the model’s generosity, but he argues that it reflects a broader market trend toward value-based offerings. For example, competitors like Costa have introduced loyalty schemes that include perks such as a free tenth drink, which Pret has yet to match. Despite these differences, Christou notes that the subscription model has seen a significant uptick in sign-ups, with nearly a 25% increase in the last year.

Meal Deals and Consumer Preferences

In parallel, Pret has experimented with meal deals to align with shifting customer needs. Last year, the chain began trialing combinations of hot drinks and toasties, priced at £6.49 for a lunchtime meal, with optional snacks or water available for an extra £1. Christou highlights that these deals are part of a broader effort to test pricing strategies and cater to a diverse range of budgets.

“Customers ‘really enjoy getting great value,’” Christou says. “But that doesn’t necessarily mean they’re choosing the cheapest products.”

This sentiment is exemplified by Pret’s “Super Plates” salad line, which, despite its £12.95 price point, has gained traction. The range, featuring larger, more filling portions with higher nutritional content, has seen a 40% increase in sales beyond expectations. Christou attributes this popularity to a growing preference for healthier options, driven by a “migration towards people trying to consume less bread.” Yet, he also observes that bread-based items like baguettes and sandwiches remain dominant, accounting for over half of Pret’s top 20 best-selling products last year.

Interestingly, the timing of salad sales reveals a shift in consumer behavior. Christou mentions that more of these healthier options are purchased in the late afternoon or evening, positioning them as a “very meaningful evening staple.” This pattern aligns with the rise of weight-loss drugs, which have influenced dietary choices and prompted Pret to rethink portion sizes. Other retailers, such as Greggs and Leon, have also noted similar adjustments in their strategies.

The Office Return and Hybrid Work Dynamics

Another key insight from Christou is the gradual return of workers to physical offices, a trend that has emerged since the pandemic. While Fridays have become quieter in Pret’s stores—many located in city centres and transport hubs—he believes this shift is part of a broader pattern rather than a temporary anomaly.

“We do think that might be a slow trend that continues,” Christou says. “Fridays are ‘definitely quieter’ in Pret stores, but the overall pattern shows a return to in-person work.”

He also suggests that the traditional five-day workweek may not make a comeback, as many employees now value flexibility. “My sense is that during Covid, a lot of people that work from home, they had existing relationships with folk in the working environment,” he explains. “And there’s more and more new people come in to roles and jobs… people want that flexibility, but also understand the importance of human connectivity as well.”

This balance between flexibility and in-person interaction has led Pret to adjust its store locations. The company is now prioritizing residential areas over purely worker-focused city centres, a move aimed at capturing the evolving needs of consumers. However, the transition has not been swift, as a retail analyst points out: “Though Pret has pivoted post-Covid to more residential locations rather than purely worker-driven city centre locations, hybrid working continues to impact demand, as the bulk of their estate remains in city centre locations.”

Challenges and Future Outlook

Pret faces a complex array of challenges, including inflation, government measures from the Autumn Budget, and changing commuter behaviors. These factors have influenced everything from pricing to product offerings, pushing the company to innovate while maintaining affordability. Christou emphasizes that while cost pressures are significant, Pret remains focused on delivering value without compromising quality.

Despite these efforts, the chain’s latest financial results for 2024 show a 2.8% rise in like-for-like sales, which Christou sees as a positive sign. However, the overall profitability remains a concern, with Pret reporting a heavy loss after a £500m shortfall. This underscores the ongoing struggle to reconcile rising costs with customer expectations for competitive pricing.

Looking ahead, Christou remains cautiously optimistic about the future. He highlights the importance of adapting to both health-conscious trends and the hybrid work model, noting that these shifts are likely to persist. “We’ve seen a growing interest in plant-based and high-protein meals, but the demand for familiar, comforting foods hasn’t disappeared,” he adds. The company’s ability to navigate these changes will determine its position in an increasingly competitive market.

In summary, Pret A Manger’s approach to consumer habits reflects a delicate balance between tradition and innovation. While the chain has made strides in adjusting its pricing and product lines, the evolving landscape of work and health continues to shape its strategy. Christou’s insights reveal that the key to success lies in understanding the nuanced demands of modern consumers and remaining adaptable in the face of ongoing challenges.