Food Industry Analysis and Strategy

This assignment delves into the multifaceted world of the food industry. Students will analyze various influential factors shaping the sector's landscape, such as Porter's Five Forces, supply chain dynamics, consumer preferences for healthy and sustainable options, and the role of technology. Case studies focusing on successful operations strategies and challenges in the organic food market will provide practical insights. The analysis culminates in formulating strategic recommendations for navigating the complexities of the contemporary food industry.

Running head: CASE STUDY OF PRET A MANAGER
Case study of Pret A Manager
Name of the student
Name of the university
Author note

1CASE STUDY OF PRET A MANAGER
Executive Summary
The purpose of this report is to investigate into the policies of a food chain called “Pret A
Manager” and discuss the problems that this business is facing. It indulges in an in depth-
analysis of this British sandwich chain and provides reasons for its eroding popularity. This
assignment analyses the background of the case study and the aim of the report is to highlight
on the problems being encountered by this food store chain. Finding real estate was proving
to be difficult and twin shops were opened to solve the crisis of space. Receiving delivering
from a parent shop helped to a great extent in mitigating this crisis. It focuses on consumer
satisfaction and the methods and plans that can be implemented that draw the attention of the
consumers. The staff should be trained on proper etiquette and mode of conduct that will
endear their brand to the customers. The employees will be able to chart the menu of their
food store that will bring in a lot of innovation and the consumers will be able to try out new
dishes. Training should be provided to the weak employees so that they do not feel
disheartened and discouraged. The customers should be able to write about complaints and
recommend suitable modifications that would help in developing the company. People in the
management being well-acquainted with the finances of the restaurant can keep track of the
cash that will help in illustrating the profit made by the company. Aim of the company
revolved round producing ‘proper sandwiches’ bereft of any chemicals or preservatives. Pret
A Manager, a few years after the inauguration opened many shops in Hong Kong and United
States. The interest of McDonald in the shares of Pret A Manager further popularized this
chain and spread its market even further. Ethical discrimination is not practiced within the
organization and treatment is meted out impartially irrespective of race, class or gender. It
boasts of being an honest store that provides great quality of service and applicants from
different races are accepted impartially. Pret A Manager faces problem on account of five
primary factors. Threat comes from the new entrants in the business, bargaining power of the
suppliers, the competitive rivalry, threat from substitute products and the bargaining power of
buyers. Psychorheology is a very significant branch of sensory analysis dealing with
perception pertaining to the rheological property of food. It specifies the existing relationship
between consumer preference and rheological properties in relation to the foods. Sensory
evaluation lays stress on the technical aspects of food that is mainly centred around consumer
psychology. Rheology is a tool that is used to relate to different facets of sensory perception
and it investigates the whole structure and interplay between the different colloidal
components. Marketing audit will lay bare the marketing plan that can play an integral role

2CASE STUDY OF PRET A MANAGER
for the development of the company. A rigorous study of the various internal factors,
anticipation of stakeholders and study of external factors can highlight the future prospects of
the company. Making profit is the main focus of the company that will drive the organization
in the forward direction. The leftovers are distributed to the poor that has resulted in loss for
the financial situation of the company. Cost-cutting is crucial and the employees are trained
in such a manner that they are able to accomplish more than a single task. There are various
firms in the market and Pret should highlight the superior quality of their products so that
consumers can very confidently buy their products. Sustainable farming is the method that is
highlighted by Pret A Manager because consumers are very careful about source of their
food. Popular ingredient is the coconut milk that is now sold more than soya and dairy free
coconut porridge is hugely popular throughout the United Kingdom. There are many
Vegetable options are also available that bring in a lot of profit for the company. The stores
should indulge in sales and offer promos that will be able to entice new consumers to buy
their product. A misconception prevails in the market that the price of the products is
extremely high and they should clearly reveal in front of the public that the superior quality
of the products is responsible for the high pricing.

3CASE STUDY OF PRET A MANAGER
Table of Contents
1.1 Case study background........................................................................................................4
1.2 Aim of Research...................................................................................................................5
1.3. Objective of Research.........................................................................................................6
1.4. Research Structure..............................................................................................................6
1.5 Research Questions..............................................................................................................6
2. Description of the situation....................................................................................................6
3. Sources of data and theories that has been used....................................................................9
4. Findings from Critical Analysis...........................................................................................12
5. Solutions to the problems and recommendations and business plan...................................16
Business Plan...................................................................................................................18
References:...............................................................................................................................22
Appendices:..............................................................................................................................24
Appendix A..........................................................................................................................24

4CASE STUDY OF PRET A MANAGER
1.1 Case study background
Clive Schlee who is the CEO of the British sandwich chain called Pret A Manager
faced disappointment after walking into a Starbucks shop at London. He saw that the
consumers had to face problem on account of the factor that they had to wait a long time at
the queue for buying their sandwich. The sell date printed was an earlier one which suggested
the essential fact that the sandwiches were sale and the business would not be able to profit
from such a bad experience. Schlee was wondering about the future of his company.
According to him, the market of Pret A Manager was not at all saturated and it was proving
to be really difficult to find the appropriate real estate that would be able to satisfy the
requirement of street visibility and kitchen space. They opened twin shops to solve the
problem of space because the store was proving to be too small to include a kitchen. They
were receiving deliveries from a parent shop that was situated a block away (Mohamed,
2013). Some employees were in favour of the strategy of opening twin shops because they
felt that by adopting this method they would be able to expand their business in the regional
sphere. There were others who wanted to do away with this system as this would jeopardise
the growth of their business. Prêt had opened 16 shops under Andrew Rolfe within the city of
New York but the US customers preferred drip coffee and they used to produce espressos
along with lattes which proved to be an important factor for their unpopularity. Pret’s
competition was increasing with the emergence of powerful supermarkets and food retailer
like Waitrose and that of Marks and Spenser.
Facilities should be made for the training of customer service which would be able to
equip them with the proper skill-set and dedication so that they would be able to provide
good service to the customers. Employees are empowered to decide the menu of their store
which though empowers the employees also carries a drawback that the menu of different
sores will be different thus creating inconvenience for the consumer. The Mystery Shopper
program is laudable however due care should be taken to select the shopper who has
professional experience and is a distinguished member of an association. The results brought
out by such a person will hence be trustworthy and can be relied upon in order to bring about
changes in the organization. The Mystery bonuses offered would surely embolden the
employees and inspire them to work hard however it can also increase the competition among
employees and destroy the relationship between them. Due care should be taken to provide
training to the weak employees so that they do not get disheartened. Parties will no doubt

5CASE STUDY OF PRET A MANAGER
provide relaxation however they should be well administered and the frequency should be
kept in check so that they do not interfere with the work schedule.
The facility of twin shops carries with it a lot of advantages however in this case both
the parent shop and where the sandwiches were sold needed to be looked after thus creating
confusion among the store manager. Disputes will arise in regard to the allocation of duties
and confusion will prevail in this kind of scenario. An article that was published in The Sun
Newspaper reported the fact that the trolley is carried for greater than half mile before they
finally arrive at the store thus revealing the essential fact that the sandwiches were not fresh
and would be detrimental for the health of the customers. The signs and labels were found to
be misleading and were not authentic. The small print on wrappers made it clear that the food
was not produced from within the house (Pret, Carter & Shaw, 2016). The tabloid, The Sun
brought out the fact that how the dishes were fetched from a mass-production kitchen. In
order to match up to the increasing sale, more stores should be opened in different places so
that the customers do not have to travel for a long time to get to their favourite store.
There should be a facility online so that customers can write about their complaints
and recommend modifications which would surely prove to be of great boon in bringing
about positive changes in the company. They would be able to think about the minute flaws
in service and report them to the operations manager who would take note of the
shortcomings and introduce changes that would profit the organization in the long run. The
advertising should be done in a clever manner and since the young people tend to go for
sandwiches they should be promoted on various youth platform like Face book and Instagram
that would help in furthering the business. More people would get to know and that would
surely increase the sales. The people who are involved in the management should be well-
acquainted with the fundamental concept in relation to the finances of the restaurant so that
they can very easily keep track of the cash that they are earning from the business and the
cash that is going out on a daily basis that would help them to track the profit made by the
company (Zenk et al., 2015).
1.2 Aim of Research
The key aim of the research is to analyze the marketing techniques of the British
sandwich store Pret A Manager. It intends to evaluate the operations management of the store
and the theories and methods that can be used for the successful running of the organization.

6CASE STUDY OF PRET A MANAGER
It investigates the new techniques that can be employed in order to improve the quality of
food in the organization and the sources that can be made use of in order to collect the data.
1.3. Objective of Research
To investigate the different aspects of customer loyalty
To investigate psychological aspect of the consumer behind their purchasing products
To identify methods that can improve the customer experience
1.4. Research Structure
The structure of the report consists of five chapters. The first chapter explains the case study
background, research aims, objectives and questions. The second chapter describes the
situation. The third chapter states the problems and evaluates the models and theories. The
fourth chapter reveals the findings from critical analysis. Chapter Five states the solutions to
the problem and the recommendations that can help in improving the organization.
1.5 Research Questions
The research questions can be the following:
How customer loyalty proves to be important?
What are the psychological factors that drive the consumer to purchase the product?
What can be the methods employed that can contribute in improving the customer
experience?
2. Description of the situation
A PESTEL analysis will provide a framework that is employed by the marketers in
order to monitor the marketing environment on an external basis that will have impact on the
organization. It is a marketing theory that will highlight the political, economic, social,
technological, environmental and legal aspects associated with an organization. The
marketing policy of an organization should be in tandem with the labour law and tax policy
so that it can steer clear of any kind of complications.
Political – On the event of Mac Donald’s buying 33% of the stakes of Pret A Manager, a
great amount of profit was earned by the Pret A Manager. McDonald’s is one of the largest
food chain and the acknowledgement of interest of Mac Donald towards that of Pret A

7CASE STUDY OF PRET A MANAGER
Manager would surely generate more profit for the company. The act of MacDonald’s getting
hold of a stake that is non-controlling would surely add to the political power of Pret. It was
noticed that after some years Pret A Manager was able to open twenty shops in Hong Kong
along with United States. The success that Pret A Manager got was on account of its
accomplishments in different spheres and it was also in the interest of McDonald. Pret A
manager’s image remains untarnished even to the present day and it is still popular as one of
the best sandwich chain.
Economic – The brand has spread everywhere and has provided work opportunities even in
the disturbing times. The first store was opened in the year 1992 and six years after the
opening of the first store three other shops were opened. The business continues to grow
rapidly and the opening of this sandwich store was followed by the opening of Itsu that is a
sushi bar that is extremely popular in London along with that of United Kingdom. Their
stores in Japan faced losses but the top management agreed to the fact that the pace at which
they expanded their business was proving to be very fast for developing. They should have
concentrated on producing good service but instead of that they were keen on building more
shops in different locations. Once a particular business enters into the mainstream, then it can
be said that the company has entered the ‘big league’. By spreading branches in Manhattan,
the company was able to convey that it was a big player within the sandwich industry.
Socio-cultural – Pret has a distinct attitude that endears to all kinds of customers. It has
created a distinct name for itself in the international sphere and it boasts in providing
environmental friendly service and also provides enthusiastic staffs that are ever ready to
serve the customers. It provides healthy food that is in line with the demands of the
customers. It thus maintains an ideal standard that makes it highly sought after by a vast
population. The items are prepared on daily basis hence they are fresh and the excess amount
are provided to the homeless people. The packaging is done with the help of recycled
cardboard paper thus it is eco-friendly. The food does not contain any preservatives and it is
perfect for those who have a healthy lifestyle. The website of Pret A Manager highlights its
attitude that is nature-loving. There is a sustainability tab that clearly mentions how the food
caters to the demands of consumers who want to maintain a healthy lifestyle. The delivery
cabs run on green energy thus helping to conserve energy. In-house cycling is greatly
encouraged and once a customer enters the store, he will be able to understand commitment
in relation to nature of the organization.

8CASE STUDY OF PRET A MANAGER
Technological – Pret has utilized technology and used it for their progression. The
advantages of e-HRM are that it helps the workers to produce more amount of output within a
short span of time. Technology has helped them to a large extent to track the in-house
resources. It helps them to keep track of groceries and stocks. The company makes use of
technology to handle leaves, delegations and tasks. They can log from anywhere and can
track their leave credits and file leaves.
Legal – The activities of the company are not devoid of intrigues. A KGB student whilst
dining at Itsu Restaurant was poisoned. On account of this incident the particular branch at
Piccadilly was closed down however autopsy report has revealed the fact that the poison store
could not be traced to the store and that the agent was poisoned before even entering the
restaurant. There have also been other incidents when reports were filed against the great
sandwich company. However, it has managed effectively to steer clear of negative
connotations.
Ethical – No ethical discrimination exists among the employees and everyone is treated
impartially within the organization. It boasts of being an honest store that provides great
quality of service and applicants from different races are accepted impartially. The ethnic
background of the customer is not considered while selecting candidates. They are selected
irrespective of their skin colour, gender or any other factor.
MacDonald’s getting hold a stake in Pret A Manager would surely contribute in
increasing the political power of Pret. Pret A Manager opening twenty shops in Hong Kong
and United States speaks volumes about the successful strategic management of the
company. Providing good service should be their first priority. Once they become popular
they would be able to expand their business in other locations and countries. They should
have concentrated on producing good service but instead of that they were keen on building
more shops in different locations. Recycled cardboard paper is used for packaging of the
products thus making it eco-friendly and endearing to the consumers. Food is devoid of any
preservatives making it perfect for people wanting to maintain healthy lifestyle. Technology
has proved to be a boon for the company in tracking in-house resources. It helps them to keep
With the help of technology, they can track groceries along with stocks. Discrimination is
not practised within the organization and everyone is treated with respect. Proper co-
ordination and effective management ensures that the organization works along healthy lines.

9CASE STUDY OF PRET A MANAGER
3. Sources of data and theories that has been used
Customer purchasing patterns, demographics and psychographics of the customers
can be analysed in order to create products that can sell in the market. Primary sources that
are being used in order to gather information are the results of experiments, statistical data,
video recording and speeches. Raw data is collected from different households pertaining to
their products in different regions in order to assess their position in the market. Sales,
services and questionnaires are used to assess the choice and needs of the present age
customer. Customers are then targeted based on the information that has been gathered with
the help of these surveys. Database marketing is used to collect information. Contests can be
run that can help in collecting information and e-mail newsletter can be used to send out
surveys that can collect essential information about the products and their promotions.
Twitter account can also be made use of in order to double as flash promotion tool and
customer service can be employed in order to go through the comments and suggestions of
consumers. Merchandising planning can be used that is very easy. Mining of database can
also help in understanding the demands of the consumers and the products of the competitors
are analysed in order to bring changes to their product and spread their influence in the
market.
Value chain is used in order to describe the way in which raw materials are received
by business, value is added to the raw materials with the help of various processes and the
way it is sold to the customers. Companies carry out the value-chain analysis in order to
investigate in different aspects of the production step. It helps in increasing the efficiency of
chain. The main goal is to generate maximum value at the minimum cost in order to create
competitive advantage. It is an important model that helps to break down the different
production activities in five different categories. It helps in garnering more profit so that the
value can exceed the cost that is associated with a particular product. Pret a Manager
focussed on striking the right kind of balance between improving the productivity in areas
that have high agro-ecological potential and at the same time making sure of market
availability. It helps in improving availability in regions that are food deficit. Emphasis is laid
on understanding the flow of the product along with transaction flaw.Outbound logistics
comprises of the following factors. The inventory produced should be managed properly and
it should be delivered to the customer. Care is taken in order to ensure that the actual delivery
takes place in the right manner so that the customers are satisfied. The management of Pret A
Manager takes care of the fact that forecasting is done in the proper manner so that it does not

10CASE STUDY OF PRET A MANAGER
incur any loss. Inventory carrying costs gives a perspective of the firm’s cost of inventory and
how the inventory can be made available to the customers. Obsolete inventory helps in
determining the long term demand of the products and regarding execution of plan.
Figure: The Business Strategy Model of Pret A Manager
Source: (Mota et al., 2015).
The Heisenberg theory gives more importance to the business strategy that lays out
the fact that the objectives of the company should be achieved with the already available
resources. It highlights the fact that the business strategy should be achieved with the help of
minimum labour cost that is achieved through the structural re-organization. The shop
employees were prepared in such a manner that they would be able to engage with the
customers in the right manner. The employees were inducted in such a manner that would be
able to spread a positive environment in the company with the help of their sincerity,
enthusiasm and genuine friendliness. The management of the company took care of the fact
that the customers did not have to wait in the queue for getting their favourite sandwich.
Importance was laid on the satisfaction of the customer. The feedback forms in the shop and
customer feedback were held to be important that would help in improving the quality of
service of the organization. Change was brought about in the organization on the basis of the
demand of the customers. The employees had a say in the process of hiring rather than that of
the management. The team members were supplied with a handbook and they had to

11CASE STUDY OF PRET A MANAGER
complete a training course. The employees had to sit for an exam that was called “ Big Scary
Quiz” after working for the first three months and they had to answer the questions correctly
but they were free to sit for the test as many times as they wanted to.
The parameters for assessing the food are determined by taste, nutritional quality,
appearance and quality. Sensory analysis plays a pivotal role in defining the quality of food.
The philosophy in relation to sensory science depends on contribution from different
professionals like chemists, data analysts and psychologists. Psychophysics lays bare the
relationship between that of measurable stimuli along with corresponding senses.
Psychorheology is an important branch of sensory analysis that deals with the perception in
relation to the rheological property of food. It highlights the relationship between that of
consumer preference and rheological properties of the foods. Sensory evaluation gives
emphasis on the technical aspects of the food and it focuses on consumer psychology.
Reaction to stimuli is measured that results after the consumption of product with the help of
analytical test. Analytical tests are generally performed with the help of trained panels
whereas on the other hand affective tests are done with the help of consumers. A sheet of
paper known as the ballot are received by the evaluators contains sample information.
Sensory evaluation involves the use of scientific method that evokes and measures responses
to different products that are perceived with the help of sense of sight, touch, hearing, smell
and taste. Rheology is employed as an essential tool that relates to different aspects of
sensory perception and it probes into the overall structure and interplay between that of
colloidal individual components (Duran et al., 2013). As such, no instrument is available in
the market that can bring change the speed of mastication that occurs during the chewing of
food. Three different kinds of sensory tests exists-discriminative test, rating test and
sensitivity test.
Objective measurement is used to measure one particular aspect of food rather than
that of the overall quality of product. When a new product is developed, it is important to
change the already existing product and this will be able to measure whether the consumer is
accepting the product. The objective test should be suitable for the food product that is being
tested. It should measure an aspect of food that has bearing on the quality of the product. A
laboratory test should be conducted that will be able to determine the nutrient composition
along with chemical decomposition of the food. Objective tests are reliable because they do
not differ with different individuals. The objective test should be in co-relation to the sensory
testing of similar kind of product. Sensory evaluation along with objective evaluation both

12CASE STUDY OF PRET A MANAGER
are necessary to evaluate the quality of food that is done on routine basis and in order to
ensure that the foods that are produced are being accepted by the consumer. These are the
two methods of evaluation that are complementary in relation to each other. Sensory testing
is expensive since panellists will be required in order to test a product. An objective test can
be performed on different samples within a day however on the other hand sensory test is a
lot more time-consuming and may take a single day to perform one test. Sensory tests provide
different results on account of variation of opinion (Bosona & Gebresenbet, 2013).
4. Findings from Critical Analysis
The primary sources reveal that Pret A Manager fulfils most of the demands of the
customers. The present day customers want healthy food and Pret produces food that does not
harm the health of the consumers. The survey focussed on different parameters like the decor
of the store, quality of food and behaviour of the employees of company. The customers were
happy about their fresh food policy and their twin model. Natural ingredients were used to
manufacture the product and that made it hugely popular among a large number of people.
Food was brought in from a kitchen nearby that ensured that the customers got fresh food.
The opinion of the consumer was asked regarding their mystery bonus and their exclusive
menu for different stores. A lot of time along with effort is spent in trying to understand the
intricacies of customer behaviour so that the consumers are satisfied. The Mystery bonuses
encourage the employees to perform better and will contribute to a great extent for the growth
of the organization. Customers expressed that facilities for online complaint should be there
so that the customers can go back home and think about the flaws that they have encountered
in Pret A Manager and bring changes to their business. The business would be able to think
about all the possible modifications that can be brought about for the organization. The
business being promoted on social platform would be able to contribute for the success of the
organization (Eskandari et al., 2015). The results of the survey highlighted the fact that
consumers want a recreation room to accompany the food store where the customers will be
able to relax and indulge in conversation. It will create a great atmosphere and the popularity
of this brand will spread even further.
The nature loving attitude of Pret A Manager makes it highly coveted among the
urban population. In-house cycling is encouraged that makes it sustainable for the
environment. Technology has helped them to a great extent in tracking the groceries and
stocks. Reports were filed against this sandwich chain however they have managed to steer

13CASE STUDY OF PRET A MANAGER
clear of any major negative incident. Ethical discrimination does not exist among the
employees that ensures that the processes go smoothly within the organization (Singh, Shukla
& Mishra, 2017).
An in-depth study of Pret will be able to identify opportunities that will be able to
satisfy the needs of the customer that have not been fulfilled. The marketing planning will be
determined by the help of marketing audit that can play a crucial role for the growth of the
organization. The study of internal factors, anticipating stakeholders and a rigorous study of
the various external factors will be able to illuminate the status of the company. The
marketing audit will provide the opportunity for reviewing the entire process of marketing
activity and it will help in assessing the past along with that of the present performance of the
company. The marketing audit can be broken down into two different categories. They are
microenvironment and macro environment. Microenvironment stands for the different forces
within the company that will help in improving the business (Eskandari et al.,2015). The
macro environment on the other hand stands for the greater societal forces that will in turn
have impact on the microenvironment. The business has no control over these aspects but
they will have impact on the organization. SWOT analysis will be able to draw on different
evidence and analytical techniques that will help in revealing important aspects. They will be
effective in finding out the business development strategy, marketing objectives along with
aims of the company. A SWOT analysis will reveal the strong points of the company, the
weaknesses of the company which the company should focus on in order to retain its hold in
the market. The opportunities will be able to highlight what are the chances that can be
grabbed in order to expand the reputation of the company. Threats will focus on the
challenges specially the external ones that is affecting the business. The strength of Pret A
Manager lies in the production of new products, affordable prices of products, creating new
advertisements and fast service (Singh, Shukla & Mishra, 2017). The weakness lies in the
fact that the products will lead to obesity hence they are unhealthy. They are loaded with
sugar that will be detrimental for one’s health. Its campaign of producing healthier product
will attract the attention of the consumer. Sponsoring will help the business in their sales. Its
home delivery service will prove to be extremely effective in drawing the attention of people
who do not have sufficient time at their disposal to go to a physical store. International
exchange rate, increasing wages of labours, the pricing of competitors are the yardsticks that
will determine the threats of the company. According to a report published in April 2017,
Pret A Manager earned around 776 million pound by selling coffee and coconut porridge. As

14CASE STUDY OF PRET A MANAGER
compared to the year 2015, the sale had increased by 15% and the earnings leaving
exceptional cost rose by a mammoth 11% and it became 93.2 million pound. The number of
shops increased to 444 from that of 399 by the end of 2016 and it spanned over six countries
(see Appendix B). Financial results marked 12th year of straight revenue and there was
growth in earnings for this private company. 2016 proved to be a record year for this healthy
food chain. The most popular ingredient was the coconut milk that is now sold more than
soya and dairy free coconut porridge is sold at a great pace and is hugely popular in UK.
There are many veggie options that provide boost for the company. Pret inaugurated a pop-up
only vegetarian store within London that became permanent on account of its popularity.
Croissant continues to be the most sought after product and around 16 million were sold in
the year 2016. The chain proclaims that 59% of the sales of Pret are items that do not belong
to the traditional lunch (Glover et al., 2014). Pret has recently given a warning that on
account of the crisis of Brexit it is encountering a staffing crisis.
The stores of Pret A Manager are visible to everyone that makes it easily accessible
for all potential customers. Pret has around 24 years of experience that makes it highly
popular among the consumer base. The customers can rely on this brand and many have
become a loyal follower of this food store chain. Their brand name has emerged to be
synonymous with healthy food and they have created a name for them self in the sandwich
industry. There are a lot of people who depend on this brand for their snacks. They can very
easily get their food and this is the reason why students want to eat at Pret’s. The results show
that in this golden era where people are extremely conscious about their lifestyle people
invest in this company and the products of Pret are readily embraced by people. All the stores
have the same kind of food items hence they do not have any distinguishing characteristic
and the items should be customised on the basis of the demands of the customer. A survey
can be carried out which would help in highlighting the choice of young people and they can
include those items on the menu. Some have commented that the price of the sandwiches
should be made cheap so that they can be accessible to all kinds of people. The high quality
of service along with the health benefits offered makes the prices high. Pret A manager is
undergoing expansion plan in different countries and this will place Pret in mainstream
competition (Beske, Land & Seuring, 2014). Subway sandwiches are also very popular in the
United States and it is competing with this powerful brand. Subway has greatly dominated
the sandwich scheme within the United States and it can be found in all the states that makes
it extremely convenient for the consumers. The process model that evaluates the operations

15CASE STUDY OF PRET A MANAGER
management is extremely effective and systematic. The raw materials are provided to
suppliers at morning, the personnel is managed and the workforce is organized in such a
manner that it does not hinder the growth of the organization. The assigning of job role is
completely on the basis of the capability of the candidate.
It has been found that the store manager plays an integral part in the process of
operations management. He keeps with himself a copy relating to the projection of sale. He
can thus very effectively communicate to the different suppliers about the required raw
materials. On the event of delivery of the raw materials, store manager provides necessary
instruction regarding the quantity that will be necessary. He takes a key part in ensuring the
good quality of the products and he has to ensure that the products are fresh so that the
company does not incur any loss. The manager plays an important role in ensuring that the
services are delivered on timely basis and the store makes all the preparations so that the
customers are not disappointed during the lunch hours (Cannuscio et al., 2014). The roles of
the employees have been distributed in such a manner that one employee does not feel
overburdened. The roles assigned to the employees are on the basis of their skill set,
experience and choice. The employees have the right to report against a superior authority in
case there is any breach of rules and regulations. Since the business centres round customer
service, hence the behaviour of the employees should be cordial and professional and the
employees have been trained in such a manner that the customers go back home feeling
contented. The daily report of sales is checked by the manager which is uploaded at the
central server (Aktaş & Yeasmin, 2015). The head office takes the key initiative into looking
at the reports that comes from all the different offices.
The desire of profit is the main criteria that drive the organization forward. It has been
found that giving away the leftovers has resulted in much loss for their financial situation.
Cost-cutting hence is important and it is achieved with the help of training the employees to
perform more than a single task. They can thus manage a large number of stores at a reduced
cost. Pret A Manager has evolved to be one of the organization that is environmentally
conscious. They avoid preservatives in their items and is hence accepted everywhere where
they want to open their store (Nuttavuthisit & Thøgersen, 2017). Their policy is thus adhering
to the demands of the modern consumer who want to stay healthy and have delicious food at
the same time. Latest technologies are employed in order to enable the maximum utilization
of their human resources. The rise in the cost of raw materials coupled with their company
policy of providing fresh products adds a lot of burden to the company. On the other hand,

16CASE STUDY OF PRET A MANAGER
their policy to cut down on the number of employees will make the store feel understaffed
and hence they increase the prices of the products so that their business will be sustainable in
the market. The good performance delivered by the staff helps in generation of goodwill
within the market and the virtues of the company helps in providing the customer with
satisfaction (Rehm & Drewnowski, 2014).
The market is rapidly expanding and becoming denser so Pret A Manager has to
manufacture such unique products that will be able to draw the attention of the audience.
Some people choose to eat at home since it is a lot more cheaper, so the pricing of the
products should be affordable to people. Effective marketing strategy should be employed so
that Pret will be able to retain their hold over the market. The service delivery and the quality
of the products should not be compromised at any cost otherwise the effect will be disastrous
for their image. They should be able to stop their loyal customers from moving into that of
their competitor. This should be dealt with on an urgent basis so that the growth of the
company is not compromised. China is making use of strict regulation to ensure the safety of
their product. Pret has recently entered the Chinese market so if they fail to meet these
regulations then it will account to public relations incident.This will be extremely detrimental
for the image of Pret and they may not be able to enter the Chinese market in the future. A
large number of companies in the market are very aggressive so if Pret fails to do any process
correctly, their competitor will take over the reins and establish their customer base.
5. Solutions to the problems and recommendations and business plan
Pret has to find a way so that it can stop the new entrants that are trying to gain entry
into the market and they should be able to devise a plan that will push their own market
share. Since the Chinese people favours food that is western push should be able to push
further into the market so that they do not have to suffer. There are a large number of firms in
the market and Pret should lay bare the superior quality of their products so that on account
of the fact that if competitors start taking over their market share, then it will have impact on
the reputation of Pret. Pret should highlight the method of sustainable farming because
consumers are very cautious about the source of their food (Wildman, 2016). They are
always on the lookout for healthy food so the method of farming will prove to be very crucial
.The products on being sustainable; Pret does not have to look for new products that would
have a great amount of effect on Pret.

17CASE STUDY OF PRET A MANAGER
Pret A Manager has established itself as a reputable company and it has many
followers around the world. They were successful in continuing the production despite
incurring losses as in the case when they lost a large amount of investment within Japan.
People at the stores often complain about the high prices so an alternative solution should be
thought of that does not compromise with the quality of the food. The stores should carry out
sales and offer promos that will further attract new consumers to opt for their product
(Oraman, 2014). Since a misconception exists in the market that the products are highly
priced hence they should be able to show to the consumers that the pricing of the products are
priced accurately. When the new customer will see that so much of effort and patience were
required in order to manufacture the product they would no longer complain (Metzger, 2014).
They will no longer think that the products have been priced ridiculously. Once Pret is
successful in convincing the customers that the price of the product is in sync with their
service and quality they will be able to win the competition. Pret will take up the top spot as
the leading contributor in the sandwich market and they will be able to beat Subway
sandwiches.
A digital outreach is extremely important for a food store in this age of technology.
By using technology, they would be able to become more popular as more and more people
take recourse to technology in order to search for their favourite food store chain (Andreyeva
& Luedicke, 2013). The website should be convenient for all kinds of people as even aged
people now make use of the internet in order to hunt for their favourite restaurant.
Advertisements on the social platform will be able to expand an organization further. Web
developers, programmers and content writers should be employed so that the website is
attractive and is able to draw the attention of all kinds of customers. A sandwich chain mainly
has items that cater to the young however if they have to grow and prosper they should be
able to increase their consumer base to accommodate the demands of the elderly who opt for
traditional items. They should be able to get their coveted range of products within this store.
Facilities should be made for home delivery so that who do not have enough time at their
disposal can opt for this method. Money can be received in cash or with the help of credit
card by the food store chain. Consumers can pay the amount based on their volition.
Business Plan
The Company

18CASE STUDY OF PRET A MANAGER
Julian Metcalfe along with Sinclair Beecham were instrumental in founding Pret A Manager
as they were unable to find “proper sandwich” in London. It used to sell sandwich, salad,
soup, pastries and coffee.
Mission
The aim of the company is to produce coffee, espresso, sandwich and pastry of high quality
in a competitive price in order to meet the need of middle income group within the local
market area. It wants to produce great customer service.
Start-Up Requirements
Start-up Expenses
Legal $3000
Premise Renovation $20,000
Expensed Requirement $40,000
Other $1000
Total Start-Up Expenses-$64,000
Start-up Assets
Cash Required $70,000
Other Current Assets $12,000
Long-term Assets $65,000
Total Assets-$147.000
Total Requirements $211,000
Start-Up Funding
Start-up Expenses to Fund $64,000
Start-up Assets to Fund $147,000
Total Funding Required-$ 211,000
Assets
Non-cash Assets from Start-up $77,000
Cash Requirements from Start-up $70,000
Additional Cash raised $0

19CASE STUDY OF PRET A MANAGER
Cash Balance on Starting Date $70,000
Total Assets- $ 147,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $1000
Other Current Liabilities(interest free) $0
Total Liabilities-$101,000
Loss at Start-Up (Start-up Expenses) - $64,000
Total Capital-$46,000
Total Capital and Liabilities-$147,000
Total Funding-$211,000
Products
Pret A Manager offers a distinct range of coffee along with espresso products of very high
quality that are completely natural. Pret A manager caters to all kinds of customers and
attention is paid to every little detail in order to satisfy the consumer. The bakery is
instrumental in providing bakery along with pastries throughout the year.
Market Analysis
The main focus of Pret A manager is to meet the demands of local residents along with that
of tourist traffic who are coming from the highways in the vicinity. It mainly focuses on
middle along with upper-income markets. These segments consume the largest amount of
coffee, sandwich along with espresso products. It wants to establish consumer base that is
large in scope. This can greatly help in establishing a healthy revenue base so that the
business can be stable. Tourist traffic is responsible for earning a large portion of revenue.
Personal customer service at competitive pricing can help to a great extent in maintaining
control of local market share in relation to the target market (Rothaermel, 2015).

20CASE STUDY OF PRET A MANAGER
The retail
Sandwich along with coffee industry is experiencing rapid growth. Competition in the area of
local market is less as other places do not provide the same kind of product quality along with
that of customer service. Local customers seek for product of great quality within an
atmosphere that is relaxing. They are on the lookout for a classy experience.
Leading competitors buy and roast coffee beans of high quality and high quality pastry and
these items are sold through retail store that is company operated. Along with that of retail
stores that are operated by company, other channels of distribution are also taken recourse to
in order to sell the sandwich, coffee and pastry products. Larger chains differ in the product
mix which is based on size of store along with that of location. The larger stores sell whole
bean coffee in different sizes and in different kinds of packaging. The competitors who are
technologically savvy make fresh sandwich, coffee and make them available with the help of
mail order or through the online mode. Websites that offer online stores facility help the
customers in purchasing coffee and gift with the help of internet have become very common
nowadays (Dey, 2016).
Sales Strategy
Pret A Manager is anticipating sales of around $491,000 within the first year, $567,000 in the
second year and $ 65,000 in the course of the third year.
Personnel Plan
Pret A Manager wants to make significant investment in the arena of sales along with that of
product development personnel.
Year 1 Year 2 Year 3
Managers $100,000 $105,000 $110,250

21CASE STUDY OF PRET A MANAGER
Pastry Bakers $40,800 $42,840 $44,982
Baristas $120,000 $126,000 $132,000
Other $0 $0 $0
Total People 10 10 10
Total Payroll $260,800 $273,000 $287,000

22CASE STUDY OF PRET A MANAGER
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Appendices:
Appendix A