Pret A Manger to buy Eat as it looks to expand veggie outlets
By Michele Maatouk
Date: Wednesday 22 May 2019
(Sharecast News) - Sandwich chain Pret A Manger has agreed to buy rival Eat for an undisclosed sum as it looks to cater to the growing trend for plant-based foods.
Pret said in a statement that it plans to convert as many of Eat's shops as possible to Veggie Prets, in response to growing consumer demand for more vegetarian and vegan options.
The acquisition is expected to "significantly" accelerate the growth of Veggie Pret, which currently has three stores in London and one in Manchester.
Pret's chief executive officer, Clive Schlee, said: "The purpose of this deal is to serve a growing demand of vegetarian and vegan customers who want delicious, high quality food and drink options. We have been developing the Veggie Pret concept for over two years and we now have four hugely successful shops across London and Manchester. The acquisition of the Eat estate is a wonderful opportunity to turbo charge the development of Veggie Pret and put significant resources behind it."
Eat CEO Andrew Walker said: "Eat's passionate and talented team are what make the business; their commitment to providing our customers with great food and excellent service is at the heart of the company's outstanding recent performance. I am delighted that their efforts have been recognised through this transaction. It has been a privilege to lead Eat for the past three years, and I believe this acquisition creates new opportunities for employees and customers alike."
Jonathan Buxton, partner and head of consumer at Cavendish Corporate Finance, part of the finnCap Group, said: "With the vast majority of Eat's 94 shops being based on London the deal represents a perfect opportunity to take advantage of a consumer shift that is found most prevalently in urban areas.
"With Pret currently only having four stores branded as 'Veggie Pret', this acquisition will allow for a rapid expansion of the brand, which will allow them to access the growing trend for vegetarian and vegan food, without the need for a site by site roll out.
"This acquisition is likely welcome news to Eat which has been struggling with the growing competition in the sector, as shown by the loss before tax of £17.2m in the year to end of June 2018."
This will certainly not be the last acquisition of this type as changes in customer demand continue to accelerate and pressure from higher rates, rent and wages causes a re-evaluation of outdated business models.
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