University Case Study: Pret A Manager Business Analysis

This case study examines Pret A Manager, a British sandwich chain, focusing on its business challenges and marketing strategies. The report analyzes the company's background, including its expansion and the issues it faces, such as real estate difficulties and competition. It investigates the importance of customer satisfaction, employee training, and financial management. The study employs PESTEL analysis, marketing audits, and sensory evaluation to identify key factors influencing the company's performance. It also explores solutions like cost-cutting, product quality improvements, and sustainable farming practices. The research questions address customer loyalty, consumer psychology, and methods to enhance customer experience. The report provides recommendations for improving the company's operations and marketing techniques, aiming to increase profitability and customer satisfaction. The analysis highlights the significance of adapting to market changes and understanding consumer preferences for the company's success.

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