You can’t go anywhere in Manhattan these days without seeing a Pret a Manger. The eatery chain is on every other Manhattan block, offering adequately priced coffee, soups, sandwiches for the New Yorker on the go. If we were to walk five blocks in any direction from the Money Badger office, we’d come across no less than five Pret a Manger locations — and each one is always busy.
Pret A Manager isn’t just a New York thing, either. They’re a London-based company with a French name and a major presence in Boston, Washington D.C., and Chicago. Out of the company’s 444 locations, 329 of the company’s eateries are in the UK. Given the sheer number of stores and proximity between each Pret location, you might think the company outdid themselves. Yet they opened 50 more stores last year — including nine in the U.S. — due to increased demand.
As Pret expands their sandwich-selling empire, they could potentially outgrow their ability to perform as a private company. That’s why the London chain might add something new to the menu: an initial public offering.
Pret might go public.
According to The Guardian, Pret a Manger is allegedly getting ready to file an IPO and go public. More importantly, Pret might go public on the New York Stock Exchange instead of London. The company is trying to rapidly expand in the States and elsewhere. Filing an IPO and raising money by selling stock is a great way of doing just that. Filing an IPO in one of the biggest markets in the world would just be the icing on the cake.
Why does Pret want to go public?
Pret a Manger is expanding at a rapid pace. They’re likely using a combination of their revenue stream, debt, and private investments to fund their expansion. By offering shares of stock in their company during an IPO, Pret could quickly raise enough money to help them expand even further.
Why does Pret want to expand in America?
As you probably know, the U.K. is going through a period of uncertainty. After last year’s Brexit vote, the current administration’s push to leave the European Union could cause some economic unpleasantness, to say the least. While the U.S. political climate is far from stable, the U.S. coffee shop market — a market Pret is a minor player in — dwarfs that of the U.K market by a sizable percentage. By expanding into cities throughout the U.S., Pret competes with the likes of Dunkin Donuts and Starbucks, offering a fresher, newer alliterative to the same old American chains. The company already makes over a billion dollars in revenue. By going public and expanding, they could potentially make tens of billions in revenue.