Pret A Manger to Cut Up to 400 U.K. Jobs as Pandemic Bites

(Bloomberg) -- Pret A Manger is closing six stores in the U.K. and eliminating as many as 400 positions as the shift to working from home amid the pandemic decimates a casual dining industry that depends on morning office commutes and lunch breaks.

Although the sandwich chain, controlled by investment firm JAB Investors, has seen sales growth buoyed by its delivery partnerships with Deliveroo and UberEats over the past four months, demand has slowed since the end of September as the rate of Covid-19 infections has increased, the company said Friday.

“We have to make these further changes as we continue to transform our business model and prepare for the six months ahead,” Clare Clough, who manages the chain’s business in the U.K., said in the statement. Pret is doing everything it can to prevent further job losses, she said.

The company specifically cited the pandemic’s impact on trading in the City of London, a financial hub of investment banks and corporate law firms, as a factor in its decision. Pret’s 266 shops in London account for the majority of its U.K. business, which employs 6,500 people. The new job reductions come after the company cut 2,800 positions earlier this year due to a slump in revenue.

In May, the chain appointed advisers A&M and CWM to guide a transformation plan for the business. So far, Pret has sought to adapt to a new normal by debuting a new coffee subscription service as well as a retail coffee offering on Amazon.com.

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