Sandwich and takeaway food chain Pret A Manger has reported a sharp increase in annual earnings, boosted by the popularity of its hot food lines.
The retailer, which has 265 stores in the UK, US and Hong Kong, said that underlying profits jumped by 37% to £46.1m in 2010.
Strong demand for hot food helped Pret’s sales increase by 17% to £327.5m, with porridge now becoming the chain’s best-selling new product since its introduction in spring 2010 - it now serves up over 50,000 bowls a week.
Chief executive Clive Schlee said: "Customers like the fact that Pret’s food is made on the premises and they are enjoying our new products, especially the hot ones."
Last year, the high street chain opened 24 sites in the UK, seven in the US, and two in Hong Kong. It now plans to open 30 new stores this year, creating 700 jobs, of which 500 will be in the UK.
The company opened its first store in London in 1986, selling sandwiches, salads and wraps. Schlee revealed he was “nervous” about the prospect of a spike in interest rates and UK unemployment but has continued to increase sales this year after a barnstorming performance in 2010.
He also said that the chain plans to open its first outlet in France in the centre of Paris later this year. He described it as the “most Pret oriented of the cities in Europe” due to Parisians’ understanding of bread and other quality food.
On the outlook for the UK, where the chain opened in 1986 and has 221 shops, he said: “What Pret is nervous about is rising interest rates and unemployment.”
But he added: “So far we have been pleasantly surprised by the momentum in the first quarter. We have stayed in mid-single digit like-for-like sales growth. We are reasonably well placed. People who come into the city generally have jobs and mortgages.”
Schlee said Pret customers continue to shop at both ends of its menu, with 99p filter coffee and the Italian prosciutto artisan baguette at £3.50 selling strongly.
