PESTEL ANALYSIS

POLITICAL:

 When McDonalds brought one – third of Pret’s company, people acknowledged

McDonald’s interest in Pret’s Sandwich, due to which the profits were increased.
 When McDonalds in 2008 sold all the Pret shares, it intensified the market position and
company’s shares as McDonalds brought brand name to Pret’s because of which it was
able to expand its business in United states and Hong Kong
 As Pret has expanded its business in United States, Hong Kong and United Kingdom-
every country has its own set of rules and regulations, so it had to adjust marketing and
operational strategy according to every country.

ECONOMICAL:
 The Pret A Manager was located in the easily accessible and visible locations which gave
them competitive advantage.
 When Pret A Manager opened 16 shops in New York, it entered “Big League” of the
sandwich industry, increasing its power.
 Pret A Manager had 300-400 average turnovers, due to which employment
opportunities were increased.

SOCIAL:

 The company has ethical code of conduct and healthy work life style. Employees were
encouraged to socialize together and emotionally connected.
 Pret A manager has unique set of incentivizing their employees such as Mystery shopper
program, this led employees always to be motivated and driven at work.
 The companies not only maintain "at point of sales" but also they were concerned about
"after sale services".

LEGAL:

 Pret’s shops labeled their food as “Just Made in This Shop’s Kitchen” but after opening
of their Twin shops, they were not consistent with their own tagline.
  The Sun , a renowned newspaper bashed Pret for misleading customer for the claim that
all their food was prepared in shops, although twin shops were not operating with base
kitchen in their shop, so it was inevitable in popular brand.

TECHNOLOGICAL:
 They used new techniques to make their product stand out from others:
1. Prepared the food in the shop itself.
2. Not using artificial flavor, color, and preservatives.
3. Made sandwiches fresh throughout day, followed fixed production schedule to
ensure optimum supply.
 Used no customer service training, instead selected employees with characteristics such
as enthusiasm, sincerity, genuine friendliness and ability to create a sense of fun.
 Their stated goal was to service every customer within 60 sec of entering the queue, so
every shop had five to seven and sometimes as many as 9 employees simultaneously
working the tills in order.
 Used quizzes like “Big Scary Quiz” as a mode of evaluating employees and using it as a
base of promotion.
 As new way of expanding in prime locations where land availability was an issue they
came up with twin shop concept where they opened a shop without kitchen at prime
locations with a parent shop nearby from where the sandwiches were brought and sold
in the shop

ENVIROMENT:

 Pret A Manger keeps the unaccounted food waste to minimum and all remaining
sandwiches were donated to local food banks.
 It has centralized kitchens unlike sandwich shops such as EAT which deliver them on
trucks to various shops, which reduce carbon emission from transport.
 Pret exclusively used fresh and natural ingredients and was against artificial color and
preservatives which uses chemicals that are harmful to environment.
 It maintains sustainability with centralized kitchens allowing minimizing food and
preparation costs which helps eliminating redundant equipment and tasks.

COMPETITOR ANALYSIS:

Food Services:

 Pret A Manger offered sandwiches without artificial flavor, color and preservatives. They
had centralized kitchens to maximize freshness and minimize stock outs that allowed
gave them upper hand over its competitors.
  Pret centralized kitchen not only made more choices available for the customers but
also the transportation cost other shops had to deal with for transporting their
sandwiches was quite reduced in Pret’s case.

Customer Service:

 The average wait time with other coffee and sandwich shop was four minutes so by the
time one reaches the counter for the sandwich it was cold, but in Pret the CEO tried to
minimize the wait time.
 The employee-customer relation i.e. offering free coffee or pastries to regular
customers and taking feedback from the customer by Pret also made a mark in the
market as compared to other shops.
 The CEO Clive Schlee also tried to minimize the time by adding 6-7 bill counters.

Shop Locations:

 Pret had the best sites in London and they opened shops every few blocks from each
other, targeting the prime locations and customers.

Employee Management:

Hiring: Pret had elegant way of hiring, where the hires were sent for “Experience day” with
shop employees and then evaluated how the hires interacted with the customers.

Training: Pret believed in motivating its employees, so it spend a lot of money and time to
enhance its employees and offered incentives .It gave plenty opportunities to its employees to
grow internally.

Employee Empowerment: Mangers have the authority to grant pay rises, so there was a system
Of transparency i.e. based on the basis of employee’s performance.
GOOD PRACTICES:
1. Customer Service and satisfaction
· Active response of feedback
· Minimum wait time ~60seconds-“Ready to eat not ready to wait”
· Healthy and nutritious food with focus on taste.

2. Hiring
· Pret has its unique practice of hiring.
· Pret were very concerned about their work environment.

3. Employee Empowerment
· Pret didn’t micro-manage their employees.
 · The Mystery Shopper program of company: It offered opportunities for
individual recognition with bonus.
· The approach followed by Pret`s are healthy and environment friendly.
· Pret practiced impartial methods to incentivize their employees.

IDENTIFY ISSUES THAT THE ORGANIZATION IS FACING

 Pret labeled its sandwich as”Just made in Shop’s Kitchen “but after opening of Twin
shops Pret did not stand to its own tagline as food was prepared in parent locations
which mean food was not fresh.
 Pret A Manger had failed to adapt in US and Japan market because of lack of awareness
of consumer due to cultural differences.
 They experienced problems over maintaining full selection of sandwiches in Twin shops
which caused discontent in some customers.

Proposed Solutions:

 Pret A Manger should have studied and analyzed its target audience and should not
have implemented same market model in every market or they should have hired
analyst to study demand pattern of different culture.
 Pret A Manager should have mentioned on their products as “use by date” but they
should have mentioned “manufactured date” to gain trust of their customers; as Pret
was known for its freshness in its food.
 They should have been Market oriented rather than marketing Oriented.
 For fulfilling the market requirement the twin shop are good strategy but it needs to be
segregated from parent Shop Culture and should be marketed as a different brand so
the customers are not deceived by the original brand tag line.