How I Made Pret $50M.

If you have any questions, reach out to me on IG: https://www.instagram.com/galbra1th/ Twitter: https://twitter.com/Galbra1th Also, connect with me on LinkedIn: https://www.linkedin.com/in/cameronjgalbraith/ Email me at: camerongalbraith@me.com In this video, I discuss a business idea that I had to help Pret a Manger boost their profits by up to $50,000,000. I think it would be wise for Pret to allow those who have their Pret Coffee Subscription to pay a small fee to bypass the 30 minute wai period between subscription redemptions for their 5 coffees a day. Check out these WSO Courses to prep for a career in consulting or finance: IB Prep Course - https://il130.isrefer.com/go/IB30off/Galbraith/ PE Prep Course - https://il130.isrefer.com/go/PE30off/Galbraith/ PE Master Package - https://il130.isrefer.com/go/PEM100off/Galbraith/ Elite Modeling Course - https://il130.isrefer.com/go/EM100off/Galbraith/ Venture Capital Course - https://il130.isrefer.com/go/VC100off/Galbraith/ Tags: Pret a Manger, Pret, Pret Coffee, Pret Coffee Business, Pret a Manger Business, Pret Private Equity, Pret Coffee Subscription, Pret a Manger Coffee Subscription, Subscription Business, Pret NYC, Is Pret Coffee Subscription worth it?, Who owns Pret a Manger, Pret Profit, Pret Coffee Subscription Business Model, How does Pret make money from their coffee subscription, JAB Holding Company, JAB Holding, JAB Holding Company Pret, JAB Pret If you’re not aware, Pret a Manger or “Pret” is a London-based coffee retailer that has over 400 stores in the UK and is growing their footprint in the US with nearly 60 stores, most of them being here on the east coast. Seeing the addiction and value placed on subscriptions by Gen-Z and other consumer groups, Pret began offering their coffee subscription in 2020 to combat slumping revenues compared to their pre-pandemic prestige. Their premium subscription costs $40 a month, and it allows users to get up to 5 coffees, teas, or lemonades a day. You can either order in the store or order ahead on their mobile app. The only caveat is that you need to wait 30 minutes between every order. It is this rule that inspired me to create this video. In the article, they reported that the Pret subscription is used 1.25 million times a week, and that’s just in the UK. Not that it matters a ton, but this is an 11% increase over a year ago. They also noted that the average subscriber redeems their subscription 28 times a month. Because there isn’t any public data disclosing the official number of subscribers, I was able to use some high-level 2nd grade math to calculate that this means there are around 180,000 subscribers in the UK alone. This was calculated by taking the 1.25 million uses a week and multiplying it by 4 to find a rough monthly estimate, and then dividing it by the 28 transactions for the average subscriber. This puts Pret’s monthly recurring revenue from their subscription at $7.2 million dollars. This was found by multiplying the 180k subscribers by the $40 subscription fee. But surprisingly, this $86 million in revenue makes up just a fraction of their total annual revenue. Pret brought in $988 million in revenue in 2022. Which puts their subscription revenue at just around 9% of the total pie. But, it doesn’t have to be this way. Conclusion To wrap this up, Pret had total annual revenue last year of $988 million dollars. This is great, but my plan can grow this number by .3% on the conservative side, and 2.4% on the liberal. Let me remind you, Pret is a coffee shop, not a tech company. A subscription model is not supposed to be a core part of its business, but it is. Apple never started off planning on selling headphones, but now their airpods business is estimated at $240 billion dollars. Netflix started with a business model centered around mail-to-order DVDs. Business environments change, and what allows these businesses to succeed does as well. You may be asking what’s the point of me making this video, and honestly I’m not entirely sure. I just one day had a cool idea and wanted to see it through. __ Pret is actually owned by an investment firm that owns some other large brands like Keurig, Dr. Pepper, Panera, and Krispy Kreme. Pret was acquired in 2018 in a deal worth around 1.9 billion dollars. Because of this private ownership, I know Pret is capable of being dynamic and is looking to juice profits - quickly. In 2021, Pret reported that they targeted to double the size of their business in 5 years, and I think this is a great way to start. Pret has already had massive success in being one of the first food retailers to offer a subscription model, so why not continue to innovate? Trust me, I’m going to do my best to get this idea into the hands of Pret and their private equity owner, even if if it means I have to go to their office, which is conveniently located just down the street from me on the 18th floor of the Empire State Building..