Even with the likes of Subway, Benugo's and newcomer Quizno's creeping up the Top 50 list, Pret, despite having been edged out of first place, still remains top of the sandwich pile.

 

There are now 150 branches in the UK, ten in New York and eight in Hong Kong. A new campaign is just getting underway to expand in New York and a joint partnership goes live this year in Singapore.

 

Group turnover at December 2005 was £170.7 million, a 12% increase. UK sales for 2006 are expected to be around £175 million and £190 million worldwide.

 

Commenting on the end of 2005 figures, chairman Larry Billett said: "These results reflect continuing improvement for Pret A Manger in all our markets. Same store sales growth in the UK was in excess of 6%, despite less favourable trading conditions in London's West End, following the July 7 bombings. Our USA and Hong Kong businesses each achieved double digit same store sales growth. All three businesses produced growth in operating margins. For the first time, the Hong Kong business achieved full operating profitability and the USA business became profitable at the shop level."

 

If anybody doesn't yet know the story, Pret got started in 1986 when friends Julian Metcalfe and Sinclair Beecham started making sandwiches because they couldn't find what they wanted for themselves in London. They went for quality ingredients with no additives, made freshly every day. Within a year the first branch was serving 7,000 customers a week.

 

The fresh philosophy has been maintained. Every branch has its own kitchen and sandwiches are made every day. Anything left at the end of the day goes to the homeless. Packaging is recyclable cardboard rather than plastic, emphasising the products' freshness.

 

Growth reached 45 stores within ten years and in 2001 McDonald's bought a 33% stake in the business, which helped international expansion. Pret was already in New York and in 2002 moved into Hong Kong. A joint venture with McDonalds into Japan didn't work and Pret pulled out in 2004 after opening 14 branches in 18 months.

 

The venture hit Pret's bottom line hard and caused some upsets in the business as large losses were recorded. Metcalfe, who had earlier moved away from day-to-day operations to launch a new business, came back in. By the end of the year, 70 new items had been introduced and plans were made to close loss-making stores. In July 2005, Pret made a profit of £7.5 million.