The rise of hybrid and remote working is fundamentally reshaping where UK consumers spend their time and money, prompting major brands like Pret A Manger to rethink their location strategy. As reported by City AM, the coffee and sandwich chain, once a staple of city-centre office districts, is now actively expanding into suburban and residential areas to meet customers where they are now living and working.
Pret’s Strategy: Following the Hybrid Worker
The shift away from a five-day office week has had a clear impact on urban centres. Research from the Centre for Cities shows that while city centres remain popular, workers are doing a smaller share of their spending there compared to pre-pandemic levels. In response, Pret A Manger is adapting its traditionally office-worker-focused model.
- Suburban and Regional Growth: Since January 2023, 82% of Pret’s new shop openings have been outside of London. The company is actively looking to launch stores “where people live as much as areas where people work,” according to UK boss Clare Clough.
- Focus on New Formats: Pret is trialling new, larger store formats in locations like Maidenhead and Broughty Ferry. These shops feature more dine-in space, made-to-order hot food, and even play areas for families, marking a strategic shift from the quick “grab-and-go” service of its city locations.
- Adapting to New Lifestyles: The new format is designed to be a “destination for customers in a bit less of a rush,” catering to local residents, families, and those working from home or in nearby flexible workspaces.
The “Working Near Home” Economy
Pret’s strategic pivot reflects a broader shift in the UK’s economic geography. The rise of hybrid working has created more vibrant local economies during the week, not just at weekends. This trend presents both challenges for city-centre focused businesses and significant opportunities for those willing to adapt.
- Growth of Suburban Hubs: Areas around suburban transport hubs and local high streets are seeing increased footfall during weekdays.
- Changing Consumer Needs: Local communities now demand more amenities, including quality coffee shops, lunch spots, and flexible meeting places, throughout the working week.
- Retail Real Estate Shift: This trend is influencing commercial real estate decisions, with retailers and service providers reconsidering the value of purely city-centre locations versus a more distributed, neighbourhood-focused portfolio.
Financing Business Adaptation and Expansion
For retailers and hospitality businesses looking to follow Pret’s lead and adapt to new consumer patterns, strategic investment is key. This could involve acquiring new suburban sites, refitting existing locations, or investing in new service models. Information on government support and finance options can be a useful starting point. Working with a specialist finance broker provides access to a wide network of lenders and tailored solutions. With connections to over 95 lenders, brokers can help you navigate the market effectively.
Key finance solutions for businesses adapting their location strategy include:
- Commercial Mortgages: For purchasing new retail properties in suburban or regional locations.
- Asset Finance: To fund the fit-out of new stores, including kitchen equipment, coffee machines, furniture, and technology.
- Working Capital Loans: To manage the initial operational costs of a new site before it reaches profitability.
- Franchise Finance: For entrepreneurs looking to partner with established brands like Pret to open new locations in their local area.
- Business Loans: For general investment in market research, marketing for new locations, and staff training.
Partnering with a finance broker simplifies finding and applying for the right funding. They understand the challenges and opportunities in the current retail and hospitality markets and can guide businesses to the most suitable financial products. For further impartial advice, explore resources from the British Business Bank and guides like the ICAEW Business Finance Guide.
Conclusion
Pret A Manger’s shift towards suburban and regional expansion is a clear indicator of the lasting impact of hybrid working on the UK economy. By moving to where their customers now live and work, they are tapping into a new and growing market. This strategic adaptation serves as a valuable case study for other businesses, demonstrating the importance of understanding new consumer behaviours and having the financial agility to invest in a revised location and service strategy.
Is your business looking to adapt to new consumer trends or expand into new locations? Explore tailored finance solutions today and connect with our network of over 95 lenders to find the perfect fit for your needs.