British coffee chain Pret A Manger has recently said that it will not reopen 30 of its shops in the United Kingdom post the coronavirus lockdown. It further said that it is planning to cut around 1,000 jobs. The recent development at the coffee chain is an outcome of the decline in customer demand due to the coronavirus pandemic.
Owned by the investment group JAB Holdings, the company runs about 550 shops across 10 markets. In the UK it has 410 shops out of which 339 of which have reopened. Out of a global workforce of 13,000, there are about 8,000 employed in the UK.
The group said it has faced “significant operating losses” following the outbreak of the pandemic, with sales across UK shops down 74% year-on-year.
It said it was experiencing a much slower recovery in the UK compared to the other countries in which it operates.
A consultation with shop teams and support staff will start this week, and no final decisions will be made until the consultation is complete.
The 30 shops that will not reopen employ 330. Chief Executive Pano Christou said in an interview with the Financial Times that job losses “could be 1,000 plus”.
Pret also plans to sell the lease of its main support office in central London and is in talks with landlords across its estate over a more sustainable leasehold model.
“We cannot defy gravity and continue with the business model we had before the pandemic,” said Christou in a statement.
“Our goal now is to bring Pret to more people, through different channels and in new ways,” he said.
In recent weeks, Pret has launched a retail coffee offering with Amazon, added delivery options in partnership with Deliveroo, Just Eat and Uber Eats, and launched Click & Collect and evening dinner menu trials.
The crisis is having a devastating impact on UK hospitality jobs.
Earlier, last week the owner of Upper Crust and Caffe Ritazza said it may cut up to 5,000 jobs in Britain. British luxury department store Harrods has also recently said that it is planning to cut about 672 jobs due to the impact of the coronavirus pandemic.
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