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Fast food industry summary

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Case Brief

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The fastest growing industry is the food industry. This stems from consumers’ behaviors to constantly spend money dining out. An instance of this trend is the growth of market value from £4,498 million in 2013 to £4,950 million in 2017 and it is expected to hit £5,089 million in 2018 (Moore 2017). Under the management of Schlee, Pret A Manger is dominating the UK market value with 16%. This domination was achieved with a trial launched in 2015 whereby evening dining was extended until 11pm by serving alcohol to consumers that love partying (Ford 2015).

Thus, Pret A Manger became the leading company while other companies were moving from bad to worse in the food industry. Pret A Manger achieved this with their core value of healthy food, low prices, quality food, and customizable options (variety) for the millennial (youth and university students). The millennials are consumers and lovers of fast food shops because of its affordability and prices. Pret A Manger could excel because of its friendly character. So, while its competitors focused on innovation, the company focused on the customer-first.

Pret a Manger Performance in US

Recently, consumers have begun watching what they eat. It is no surprise that vegetarianism is on the rise with the avocado pear becoming the highest consumed ingredient. Its consumption is estimated at 5 million annually. Thus, Bridgepoint added vegetarian food and avocado to Pret A Manger’s sandwich collection to make it more attractive. In a week, following the introduction, it sold approximately 17,000 sandwiches with avocado in vegetarian Beets, feta SuperBowl and Squash. It exceeded the sales in chicken and salmon sandwiches. This pushed the earnings of the company by December 31, 2015 to, a whopping 13.9% increase (Grant).

By 2016, the total sales from the company had grown to £776.2 million which is an additional 15% increase (Ford 2015). Schlee’s overhaul of the food store delivery grew in two ways: First, 24-hour business and second, a shift from sandwich and bread-based products to heavy meals and vegetarian meals. These ways projected more revenue for the company especially during lunch hours or snacking times.

Competitors of Pret A Manger

In the UK, Pret A Manger was ranked highest in customer loyalty. In coffee sector, it was ranked 45% with customer’s satisfaction. But it faces stiff competition from Costa Coffee, Caffè Nero, Starbucks and Greggs. In the sandwich retails, it faces competition from Marks and Spencer, Tesco, Waitrose and Sainsbury’s. Although, there is a high possibility of customers shifting to other shops, there is also the high likelihood that customers would recommend Pret A Manger to other consumers.

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