Pret a Manger is expanding to five new countries after a £100 million investment by its owner and founder.
It is also planning to open 200 more shops in the UK and hire 3,000 staff by the end of 2023.
The coffee chain, which focused on central business districts before the pandemic, reported big losses caused by Covid-19 lockdowns.
The UAE was one of the first international markets into which Pret a Manger expanded, alongside the US, France and Hong Kong. The UK-based chain hopes lessons it has learnt during the pandemic will help during the next round of expansion into five countries, which it did not identify.
“Over the past few weeks and throughout the whole of summer we have started to see a very strong recovery,” said chief executive Pano Christou.
The group has diversified its business since the start of the pandemic in an attempt to reduce its reliance on city centre workers for trade.
It launched retail coffee products and a coffee subscription service, and expanded through delivery operators.
“We are keen to open more stores in regional and suburban areas, as these have been really strong recently,” Mr Christou said.
“We have obviously kept an eye on the way trends have shifted since the pandemic and obviously areas such as service stations have been particularly busy, so that it why we have linked with Moto and Motor Fuel Group.
“We are seeing lots of property opportunities but it is unsurprisingly competitive for the best sites, but I think landlords see us as a really strong brand and are keen to bring Pret in.”
Pret plunged to a pre-tax operating loss of £256.5 million for 2020, according to new filings in Companies House.
It also revealed that it has been backed by a new £100 million net investment by owner JAB Holdings and founder Sinclair Beecham.
Pret's revenue fell by 58 per cent to £299 million for the year, as it was forced to shut shops for months and footfall was significantly depressed by Covid-19.
It said its regional shops were now at their strongest ever levels while its London city sites had rebounded to 72 per cent of weekly pre-pandemic sales.
Mr Christou said certain launches were more successful than others and the group had pulled back from its trial of evening meals after disappointing results.
The update comes days after the group announced a 5 per cent pay rise for its cafe workers.
Mr Christou said industrywide staff shortages had posed “a challenge” for the business, but that it hoped investment in its pay structure would entice more new employees.
The group closed around 30 stores and shed thousands of jobs following the initial impact of the pandemic.
COMPANY PROFILE
Company name: SimpliFi
Started: August 2021
Founder: Ali Sattar
Based: UAE
Industry: Finance, technology
Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
