Tuesday, February 20, 2024
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Pret A Manger Franchise in India – Eligibility, Cost, Fee, & Profit

Pret a Manger has now officially arrived in India. You may have read a number of articles evaluating its potential for future expansion as well as the effects it will have on the Indian cafe industry.

Did those article or post had made you to search about its franchising opportunity? Do you have the required funding to start a Pret a Manger Franchise, and wanted to know more about its cost, fee, and opportunities available in India?

Then, we have got you covered. Indeed the recent dispute or rumors about MBA CHAI Wala has shaken several franchises to start a Tea and Cafe outlets, but joining hands with a renowned and international franchises will always give you an upper hand in any kind of business.

Irrefutably, the Tea and cafe chain has grown extensively and has certainly offered significant return to its franchisee and franchisor as well.

But, there is a catch, although there are numerous franchises popping out every other day, but a chain with strong foundation, better business value, support system, and varieties in offering has always taken advantage against its competitors.

So, this blog is going to be all about another SUPER-DUPPER HIT French cafe chain that has already marked and positioned itself as a leading cafe locations across the globe.

In this blog, we’ll be covering a comprehensive article on starting a Pret A Manger Franchise in your city with its capital required, cost, profitexpansion strategies, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Pret A Manger Franchise Opportunity
  • Company: Pret A Manger
  • Founded: 1986
  • HQ: London, England, UK
  • Industry: Food & Cafe
  • No. of outlet: 550+
  • Area served: Worldwide
  • Franchise Fee: ₹20-30 lacs
  • Profit Margin: 10-15%
  • Area Required: Min. 2500 sq ft
  • Total Initial Investment: ₹ 2 Crores to ₹ 4 Crores

Overview of Pret A Manger Franchise

Overview of Pret A Manger Franchise

Launched in India, just a days after Apple CEO Inaugurated its first Apple stores in Mumbai, India, Pret A Manger, An Iconic London Cafe shops has opened its first outlet in India’s financial hub Mumbai on Friday with a large dining space spread across 2,567 sq feet.

The franchise cordially invites all fans of fresh food and organic coffee to stop by and dine in with their family and friends or get fast takeout.

Pret A Manger, also referred to as Pret, is one of the leading and most popular international food and coffee houses. It was established in London, England, in 1983 by Jeffrey Hyman and later acquired and operated by Julian Metcalfe & Sinclair Beecham. Since opening their first store in London in 1986, they haven’t looked back.

Known for serving fresh and healthy food options with a range of food menus, Pret A Manger has grown rapidly over the years to become a global brand with more than 550 stores across 10 countries, including the UK, US, Hong Kong, France, Dubai, Switzerland, Brussels, Singapore, and Germany.

The chain will serve freshly prepared Coffee, Tea, Smoothies, Cookies, Sandwiches, Soups, Croissants, Baguettes, and Salads.

Important Fact:

Pret A Manger has partnered with one of India’s leading and largest retail brands, Reliance. It was mutually agreed upon between them. They will be opening up several outlets in the near future under a Joint venture scheme.

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Pret A Manger Franchise Opportunity- The Journey

Since its inception in London in 1986, Pret has been growing and quickly expanding its outlets while maintaining its business value and profitability.

Its wide range of offerings on the menu, best-in-class raw materials, and outstanding and delightful customer experience have allowed the chain to grab a significant market share.

In India, It has partnered with Reliance Group, and it is certainly ready to disrupt the Cafe industry with its world-class fame and exceptional customer experience. According to the World Coffee Portal, Pret and Reliance have planned to open 10+ outlets in their first year of partnership.

Key Facts on Pret A Manger

Sr. NoTypePrivate
1Trade NamePret A Manger
2IndustryFood and Coffee
3FoundedEntered in Indian Market in 2023
4Founders Or Parent CompanyJulian Metcalfe & Sinclair Beecham
5HeadquartersLondon, England, UK
6Number of locationsOver 550 locations
7Area servedIn more than 10 Countries
8ModelFranchise
9Menu offeringCoffee, Tea, Smoothies, Cookies,
Sandwiches, & more
10Revenue£357.8m ($433.8m) in HY 22
11Websitehttps://www.pret.co.uk/en-GB

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Why Consider Owning a Pret a Manger Franchise?

Owning a Pret A Manger Franchise

There could be several reason to franchise a Pret a Manger location, and it may certainly depends on person-to-person. Undoubtedly, it will require a significant amount of capital to operate and manage an outlet like this. Below are a few major reason listed for your reference;

But Is Pret A Manger Franchising option available for all? The answer is – No. We’ll be discussing in detail more about it in upcoming sections.

  1. Established Coffee House:
    • As a new franchisee, you may have access to their proven and established business model that have been helping them to grow and expand their location and business extensively.
  2. Growing Food and Cafe Industry:
    • In recent years, the demand for healthy and fresh food has grown significantly, and India being one of the second-most populous country may boost its demand in future.
    • As per recent study, the F&B industry is expected to grow at compound annual growth rate(CAGR) of over 11% between 2021 and 2026.
  3. Partnership with India’s largest Retail chain:
    • As stated earlier, starting a Pret A Manger chain requires a significant amount of initial investment with a experience of handling and operating a large scale food franchises(Making it nearly impossible for low scale investors). For that, they have partnered with Reliance brands.
  4. Worldwide expansion:
    • The franchise has planned to expand its outlets worldwide by partnering some of the leading platform or brand from specific industry. Currently, the chain operates in more than 500+ locations and with more outlets planned for future release will surely create tremendous growth opportunity in this market.
  5. Revenue Sharing:
    • Pret a Manger often chooses to setup an outlet on revenue sharing model, where the franchisor shares a certain percentage of profit with the franchisees.
    • It can help a new franchisee to increase profitability and incentivize franchisees to grow their businesses.
  6. Marketing and Advertising Support:
    • As a Franchisee owner, you may have access to marketing materials, social media support, and national advertising campaigns.

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How much does a Pret A Manger Franchise Cost?

Pret A Manger Franchise Cost in India

As stated earlier, Pret A Manger doesn’t offer franchising opportunity to everyone. It is due to their humongous requirement to operate an outlet, such as high liquid capital and experience to handle a large-scale food franchise.

Additionally, it should be noted that Pret A Manger frequently collaborates with top-tier retail chains that open new locations and run their existing ones throughout the relevant nation.

Nevertheless, To start a Pret A Manger franchise(Dine-in Model), one would at least require an initial investment of ₹ 2 Crores to ₹ 4 Crores or $500,000 to $1 million and a dedicated floor area of over 2500 square feet. This initial investment does cover the franchise fee, marketing fee, and other necessary expenses.

Pret A Manger Franchise Fee

The franchise fee for the Pret A Manger could be between Rs. 20 lacs to Rs. 30 lacs lacs(Depends on chosen model). Furthermore, to qualify financially, franchise candidates and their partners/investors must have minimum net worth of Rs. 20 Crores with available liquidity of Rs. 10 Crores.

Additional Cost for Pret A Manger

Typically, to run and maintain a Pret A Manger outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The on-going royalty fee of Pret A Manger could be between 5-8% and ad royalty fee of 2-3%, which will be paid by franchisee on a monthly basis.

Name of FeeCost and Other Details
Initial Franchise FeeRs. 20 – 30 lacs
Floor areaOver 2500 sq. ft
Royalty Fee5-8%
Ad royalty Fee2-3%
Planning and Development
and Design Costs
Rs. 80 lacs – 1 Cr
Initial InventoryRs. 25-30 lacs
Additional FundsRs. 50 lacs
Net WorthRs. 20 Crores
Available LiquidityRs. 10 Crores
Total Initial InvestmentRs. 2 Cr – Rs. 4 Cr

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How much is Pret A Manger Franchise Profit?

Pret A Manger Franchise Profit Margin

There is no doubt in stating that Pret A Manger is one of the highly valuable and recognized coffee house that requires a huge initial investment. Being a high capital franchise, its profitability also depends on several factors, such as Location, customer footfall, outlet’s visibility, and much more.

Considering franchisees with a perfect location, and with Pret a Manger’s expertise, outlet’s presence across the globe, partnership with leading brands, and robust supply chain will also help their partners to build a strong and profitable business with Pret.

According to the industry’s standards, one may anticipate a healthy profit margin of 10-15%.

The margin may seems like low but considering the brand value and the sales growth prospect, you might earn more than average food and beverages franchises in India.

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What does it require to become a Pret A Manger Franchisee?

Pret A Manger is not like a usual cafe franchises, and considering the capital required in owning may give a very little margin of error. It is one of the key aspects of Pret that segregate normal franchises to potential owners. Below are the requirements provided for same;

  1. First and most important – One should be financially well-qualified and have good credit to start a Pret A Manger location, and should be ready to invest minimum 2 Crores to ₹4 Crores.
  2. Interested applicants are advised to dedicate themselves to the Pret A Manger business and follow the company standards and maintain their legacy.
  3. Interested prospects must undergo and complete the necessary training program offered by Pret A Manger’s team.
  4. Interested franchisees should have a passion to work in the Food & Cafe industry and should possess the leadership and financial skills to operate a Pret A Manger outlet.
  5. Applicants are advised to secure a suitable location that meet Pret A Manger franchise requirements, such as high visibility and easy accessibility with a min floor space of 2500 sq feet for a dine-in model.
  6. Potential franchises or partners should also have minimum net worth of Rs. 20 Crores with available liquidity of Rs. 10 Crores with a experience in managing the operation of a mid to large sized food and beverage concept.

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What are the support offered by Pret A Manger Franchise?

  1. Site selection & planning
  2. Interior & Exterior planning
  3. Necessary IT and Marketing support
  4. Quality check and raw material
  5. Proper Supply chain support
  6. Staff training program
  7. Marketing and sales growth strategies

How to Get Pret A Manger Franchise?

For starting a Pret A Manger location will require an enormous investment that may offer an impressive gross profit margin. Additionally, the Pret A Manger chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

  1. Visit their official website to understand more about its offerings.
  2. Fill in the below mentioned form and email it to franchise@pret.com.

Application form


Final Takeaway – Summary

Pret has unquestionably made a big splash in the Indian cafe and culinary industries by partnering with one of India’s leading retail giant. The franchises offers a high quality of cafe range, sandwiches, and much more. With an agreement to open more outlets in near future will definitely raise the bar for the food and beverages market in India.

We at FranchiseGoal would like to inform you that Pret A Manger has given essential franchising rights to Reliance group, who will be operating and expanding their locations in other part of the country. If you want to open their store outside of India, please fill out the form above and email it to the provided address.

To become a Pret A Manger franchise owner, one may require an investment of Rs. 2 Crores to 4 Crores and a floor space of 2500 sq. ft. and can start your entrepreneurial journey.

Nevertheless, if you too keen about profitability, then Pret A Manger offers an interesting program for its franchisee owner, and one can certainly expect to earn 10-15% of net profit margin.

The bottom line – Definitely, owning a Pret A Manger can be a lucrative business opportunity for entrepreneurs who are interested in the food and cafe industry.

But with limited franchising opportunities and high initial investment cost, it could be difficult for a Mid-sized franchise owner, and also In India, they have partnered with Reliance to expand their locations.

Good Luck!! Happy Franchising!!

Read more:

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FAQ

  1. How much does it cost to Start a Pret A Manger Franchise in India?

    Ans: Undoubtedly, Pret A Manger requires an enormous initial investment cost and for a dine-in model, it may cost around ₹ 2 Cr to ₹4 Cr for a floor area of min. 2500 sq feet.

  2. Is Pret A Manger Franchise Profitable?

    Ans: The profitability of a Pret a Manger location depends on several factors, such as location & average customer footfall. Moreover, considering the Pret a Manger’s expertise, backing from renowned chain, and varieties in offering may help franchisee to earn a hefty profit margin.

  3. Is Pret A Manger a Franchise?

    Ans: Pret A Manger is certainly a franchise, but it is quite limited to big investors/agencies. In India, Pret has collaborated with Reliance that will take care of their outlet’s expansion and operations.

FranchiseGoal India
FranchiseGoal Indiahttps://in.franchisegoal.com
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