Sat 30th May 2020 - Pret appoints advisors for ‘comprehensive transformation plan’ Pret appoints advisors for ‘comprehensive transformation plan’: Pret A Manger, the JAB Holdings-owned business, has appointed advisors as it looks to undertake a “comprehensive transformation plan”, which could it see it push to change to a turnover-based rent model and lead to a limited number of permanent stores closures across its circa 430-strong UK estate. The company is working with professional services firm Alvarez & Marsal and property agent CWM to advise on aspects of the plan and to examine the best options to “adjust its business model in a new retail environment”. The transformation plan is set to focus in particular on the cost base of the business, including “leasehold pressures” in light of the changed market conditions. Pano Christou, Pret A Manger chief executive said: “Like the rest of the industry, we have been radically adapting our business model to succeed in the face of the changing market conditions. Reduced footfall, combined with high rental costs, have placed substantial pressure on our business. We are putting together a clear plan to address these issues and are already making good progress, with more than 300 shops up and running again as of next week. While Pret may look and feel a bit different in the short term, if we take the right steps today, we’ll make sure Pret can thrive in the future and serve even more customers with great food and coffee.” Last month, Pret began talks on securing a €100m loan from its banking syndicate to help it weather the impact of coronavirus, with the fear trading post-lockdown in high-density footfall trading areas in which the brand operates will be significantly impacted by social distancing measures, and office workers deciding to work more from home. Christou previously said Pret had enough cash to make it through the current lock-down but it needed funds for a “test and learn stage” to develop the operation once restrictions have been lifted. He said: “As a business coming out of this, we might look different, possibly smaller. I wish I could tell you in six months what size Pret will be. What I can tell you is Pret will still be there.” Over the past month, Pret has undertaken a major review of its operating model to ensure it can safely and effectively open its UK shops to comply with the latest guidelines on coronavirus. It will reopen a further 204 sites on Monday (1 June), taking the total number of sites it has reopened across the country to more than 300. The business has also accelerated its plans to bring Pret to more people. This has included serving customers through new channels, such as the recent launch of its first retail coffee offering with Amazon, and broadening its delivery footprint in partnership with Deliveroo, Just Eat and UberEats.