Pret A Manger founder says restaurants face a 'terrifying' future

2022-10-22

Pret A Manger founder Julian Metcalfe who sold sandwich chain for £364million says Britain’s restaurants face a ‘terrifying’ future due to soaring food and energy costs

He said when interest rate rises hit working people they will cause a shock
The 62-year-old said prices for some ingredients have suddenly doubled
He said prices will be cheaper than rivals’ and are likely to be a third of others

Pret A Manger founder Julian Metcalfe who sold the sandwich chain for £364million says Britain’s restaurants face a ‘terrifying’ future due to soaring food and energy costs.

The enterprising giant said interest rate hikes – which currently sit at 2.25 per cent – will cause a terrible shock to working people and businesses.

The 62-year-old said the cost of some ingredients have suddenly doubled while sales for basic foods have halved.

The successful entrepreneur told the Telegraph he knows competitors’ energy bills have gone up ten fold because ‘food production uses a huge amount of energy’.

Pret A Manger founder Julian Metcalfe (right) who sold sandwich chain for £364million says Britain’s restaurants face a ‘terrifying’ future due to soaring food and energy costs

Mr Metcalfe set up Pret A Manger at the age of 27 when he and a university friend Sinclair Beecham fitted out the first store in Victoria Street, central London

He told reporters prices will be cheaper than rivals’ and are likely to be a third of others. According to statistics London restaurants are still below pre-Covid levels

Mr Metcalfe – who has an estimated £215million fortune – admitted problems in the industry could be good for fast-food chain Itsu he founded in 1997.

He told reporters prices will be cheaper than rivals’ and are likely to be a third of others.

And according to recent figures London restaurant bookings are suffering and remain below pre-Covid levels.

The serial businessman has sympathy for colleagues in the industry but is adamant he can find a way to improve and adapt during the economic turbulence.

Sinclair Beecham and Julian Metcalfe, former owners of Pret a Manger sandwich bars, standing outside one of their old stores

Mr Metcalfe set up Pret A Manger at the age of 27 when he and a university friend Sinclair Beecham fitted out the first store in Victoria Street, central London

His advice for improving conditions in the economy at large are to reduce VAT, business rates and loosen controls on immigration.

Bringing the VAT rate to 10 per cent, as he suggested, would alleviate some of the costs but experts worry even a small cut would cost the government billions of pounds.

At the same time net migration remains at historically high levels, with the figure running at nearly 250,000 in the last twelve months.

Mr Metcalfe set up Pret A Manger at the age of 27 when he and a university friend Sinclair Beecham fitted out the first store in Victoria Street, central London.

He claimed his business was turbocharged by free movement of people after Britain opened its doors to the A8 countries – Czech Republic, Slovakia, Poland, Hungary, Slovenia, Estonia, Latvia and Lithuania – in 2004.

In 2008 he sold the business for £364million to equity firm Bridgepoint.

According to statistics there are now 419 Pret stores across the UK.

His more recent project Itsu is a fast-food joint which will not worsen the ‘unbelievable’ obesity epidemic hitting the nation.

He also thinks office life has changed forever and is keen to adapt his business which was opened in 1997.

According to his own data, Itsu bookings are up by 15 per cent from Tuesday to Thursday but down 20 per cent on Mondays and Fridays.

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