Pret H1 sales up 10%, £1 in every £4 now spent by its customers outside the UK, raises £250m of new capital: Pret A Manger has this morning reported that its system sales across company-owned and franchise shops increased 10% year on year in the first half of 2024 to £569m (2023: £518m), driven by international expansion and new franchise partnerships, alongside same-store sales growth of 3%. It said that franchising now represents circa one third of Pret’s sales around the world, and that Pret is now operating in 18 markets. 2024 growth comes as business reports £1.1bn global sales for 2023. It comes as the business files its 2023 accounts, with worldwide system sales of £1.1bn for the year, up 22% versus 2022, aided by same-store sales growth of 15% and a record number of new shop openings. Adjusted Ebitda for the year stood at £166m, up 12% on 2022 (£147.8m). It also confirmed it had achieved its medium-term growth target set in 2021 of doubling the size of the business within five years, three years ahead of schedule. The company said that New York has become the overseas capital for Pret customers outside the UK, with the highest sales after London, driven by a new joint venture with franchise partner, Dallas International. It said that the deal, which completed in February 2024, is helping to accelerate growth across the US, refurbishing existing shops and expanding Pret’s US presence, with over ten new shops planned on the East Coast by 2026. Meanwhile within the UK, Pret has agreed a new partnership to open six new shops across Scotland and now has ten shops across the island of Ireland. Since January 2023, 87% of new Pret openings have been outside of London. During 2023, Pret opened more shops than any year in its history. A total of 81 new shops opened worldwide, of which more than half were outside the UK, including in the US, Canada, India, Greece and Spain. Pret said its growth in India has already been the fastest market expansion in the brand’s history, with 15 shops opened across Mumbai and Delhi within 12 months. Following 18 months of rising commodity costs, Pret said it began reducing prices on its most popular products and best-selling items earlier this year, including reducing its posh cheddar and tuna & cucumber baguettes to £3.99, and has not increased these prices since. In July 2024, the business announced changes to its Club Pret subscription to allow for further price reductions for all customers, including bringing back its 99p filter coffee price. It said that UK sales of filter coffee during August increased by 60% compared to June. Earlier this month, Pret’s shareholders raised £250m of new capital to reduce certain banking facilities and improve liquidity. The move follows the recent changes to Pret’s board, and the company said reaffirmed its “mission to put the customer first while also reducing debt built up during the pandemic”. Pret A Manger chief executive Pano Christou, said: “I am so proud of the progress we have made over the last three years. We set ourselves some tough targets to get Pret going again after the pandemic, and we have delivered. Our teams have worked incredibly hard to make this happen, and I also want to take this opportunity to thank our customers for coming to see us and enjoying our freshly prepared food. Ever since I started at Pret more than two decades ago, the foundation for all our success has been about doing what’s best for the customer, and we are only as good as the service we give to our customers every day. The fact that £1 in every £4 is now spent outside the UK is both an achievement and an opportunity for our business. It shows how big the appetite is from customers all over the world for Pret’s menu and our unique range of ingredients and recipes. We’ve been cooking up new recipes to match this appetite and we now have over 300 unique recipes freshly made each day, ranging from our Ham & Grevé Baguette in the UK to our Sriracha Chicken Wrap in Delhi. Looking to the future, our recipe for success is to focus on doing what Pret does best: creating delicious, freshly made food for our customers, only using the high-quality ingredients that we’re proud to have in our kitchens. One of the big signs we’re doing something right is that new products and new food innovations, such as our bespoke soya and coconut satay and shawarma sauces, are making a bigger contribution to our sales than last year. Our autumn menu was the biggest launch for many years, with 20 new products coming onto our menu, including the return of customer favourites such as the Mediterranean style tuna flatbread. We also want to make our shops and the whole Pret experience as special as they can be for our customers and their families, building on the success of our first ever children’s menu, Little Pret Stars, earlier this year. I want to thank all our team members for everything they do to help bring the joy of Pret to our customers, and look forward to taking Pret to even more people, in more places, next year.”

Comptoir Group reports solid H1 against a backdrop of sector volatility: Comptoir Group, the owner of the Comptoir Libanais and Shawa brands, has reported a solid H1 “against a backdrop of sector volatility”, with like-for-like revenue growth in its equity sites of 0.9% and an increase in gross profit. The 29-strong company said that total revenue for the half-year to 30 June 2024 was £15.9m (H1 2023: £14.8m) and the adjusted Ebitda loss was £0.6m (H1 2023: £0.3m loss). The company said: “The group controls remained strong but a combination of ongoing cost pressures and a conscious decision to invest in the labour of our new sites post opening has impacted profitability. Group Ebitda fell marginally compared to the same period last year, largely due to favourable delayed rent reviews and lease extensions creating artificially low fixed costs in the prior year. The IFRS loss after tax was £1.7m (H1 2023: £0.8m loss). The group cash balance at the half-year was £4.9m (H1 2023: £7.6m) after investment in new sites and refurbishments during the period and continued repayment of our CBIL loan. The outstanding balance on the CBIL at the half year was £1.3m (H1 2023: £1.9m).” The business opened a new flagship restaurant in Southbank London and brought Cheshire Oaks Outlet Centre back into the managed portfolio from its franchisee during the period. Yalla Yalla Soho closed in February and subsequent to the half year its Ashford Outlet Centre franchise restaurant closed. During the half year the group also opened two new franchised restaurants in major international airports, Shawa in Abu Dhabi and Comptoir Libanais, with a new partner, in Milan. At the half year the group owns and operates 22 equity restaurants, with a further seven franchise restaurants across two partners. The business said: “Despite economic challenges and rising costs, the group is seeing positive results from its strategic initiatives. The group is confident that its proactive measures will lead to improved performance in the second half of the year and beyond, with trading since the half year in line with expectations. There does however remain an element of uncertainty with regard to the impact of the new government, particularly with respect to planned future National Minimum Wage increases and business rates reform. The upcoming Budget in October will hopefully provide some further clarity. The group aims to leverage the investments it has made to deliver enhanced Ebitda and cashflows. With a full leadership team now in place, the board has confidence in the prospects for the longer term.”

Deliveroo co-founder sells circa £15m of shares: The co-founder and chief executive of Deliveroo has sold shares worth almost £15m, a month after the food delivery group delivered its maiden profit. The company said that Will Shu sold 9.4 million shares between 12 September and 16 September 16, worth a total of £14.8m, to “cover personal property investments”. Following the sale, he retains 95.8 million shares, the group said, adding that Shu does not take part in its annual bonuses or long-term share award schemes. The sale comes a month after Deliveroo turned a profit for the first time and launched a £150m share buyback. Its shares have risen by almost 30% in the past 12 months. For the six months to the end of June, the company reported a profit of £1.3m, against an £82.9m loss in the same period a year earlier.

Raise taxes on sugar and alcohol to save NHS billions, say experts: Further taxes on sugar and alcohol must be imposed to prevent a surge in long-term sickness that would cost taxpayers billions of pounds, a group of experts has concluded. The Times reports that Lord Darzi of Denham, who last week published a government-ordered report laying bare the crisis in the NHS, will tomorrow set out a blueprint to reverse a tide of sickness that he warns is crippling the economy as well as the health service. Along with Dame Sally Davies, the former chief medical officer, he is pursuing a battery of tough regulations and taxes on unhealthy products that could be used to subsidise the purchase of fruit, vegetables and other healthy food. Colourful front-of-packaging health warnings on junk food and alcohol are also being recommended to stop Britain languishing as “the sick man of Europe” and having another 1.5 million people added to the record number of long-term ill. It comes as Professor Sir Chris Whitty, the chief medical officer, pressed the case for sugar taxes and minimum alcohol pricing after Sir Keir Starmer promised “bold and controversial” public health measures. While Wes Streeting, the health secretary, is said to be resisting measures that would push up the cost of food and drink, he and the prime minister are under pressure to set out how they plan to prevent obesity and other illnesses after accepting tough action on public health will be central to a ten-year plan for the NHS. A cross-party commission on health and prosperity, run by the Institute for Public Policy Research, has said that the health challenges have reached “historic proportions”, highlighting the sharp rise in long-term illness since the pandemic. It warns of 900,000 “missing workers” due to an increase in long-term sickness since the pandemic, suggesting this has cost £4.5bn through lost tax revenue. Improving the nation’s health could save the NHS £18bn over the next decade, the commission concluded. It comes after the Office for Budget Responsibility reported that Britain’s worsening health was the single biggest long-term threat to the public finances.

London’s mayor announces plan to pedestrianise Oxford Street: London’s Oxford Street will be pedestrianised under proposals set out on Tuesday by Sadiq Khan, the city’s mayor, as he tries to make the famous thoroughfare “the leading retail destination in the world”. The FT reports that the central London street “is in need of major regeneration” after suffering from increased competition from online shopping, the closure of major department stores and the lingering effect of the covid-19 pandemic, the mayor’s office said. “Oxford Street was once the jewel in the crown of Britain’s retail sector, but there’s no doubt that it has suffered hugely over the past decade,” Khan said. “Urgent action is needed to give the nation’s most famous high street a new lease of life.” Khan’s years-long effort to pedestrianise the street has faced opposition over the disruption to traffic and public transport, and concern about access for disabled people. The plan has been given a boost by the election of a Labour government in July. Deputy prime minister Angela Rayner said the redevelopment would “drive growth by creating new jobs, generating economic activity and giving a much-needed boost to London’s night-time economy”. Khan said he proposed the creation of a new Mayoral Development Corporation for the area with planning powers to drive the overhaul of the street. Westminster City Council, which is responsible for the street, has opposed previous pedestrianisation plans. Stuart Love, the council’s chief executive, said he only learnt of Khan’s scheme days ago but that the council would “work constructively” with the mayor.

Flamingo Land plan for Loch Lomond banks rejected at meeting: Plans to build a Flamingo Land resort on the shores of Loch Lomond have been rejected unanimously by the Loch Lomond & The Trossachs National Park Authority. The Herald reports that the Yorkshire theme park operator had submitted plans for Lomond Banks, a resort with woodland lodges, hotels, a monorail, a water park and other facilities on the southernmost point of the loch. More than 150,000 objections were lodged to the proposal, and the National Park Authority itself published a report which concluded that the application should not be accepted. A final decision arrived on Monday following a site visit, hearing and meeting at Lomond Parish Church.