Dear James Hoffmann,
first of all, thank you for responding to my comment on your video, unfortunately my comments and your response are hidden from the public, and I re-checked via different browsers and devises, my initial comments are not there, but it’s not important anymore. Please forgive me that I made a screenshot and am publishing it here. I do so because I suffered greatly, became ill and almost lost my life.
You seem a sensible person trying to look at business news objectively. And if I was looking from the outside in myself without my inside experience, I would even like your take on this. The problem though is, you as most people looking in from the outside seem very easily blinded by the brilliant PR that Pret is so good in.
I’d like to post your thoughts on the JAB purchase of Pret A Manger here and respond with my experience and real “insights”, having worked in Pret for close to 10 years helping with their success. I also tried to improve work conditions internally to no avail, while becoming out-of-sync after my brother died and being mistreated on top of it, making many mistakes and sliding into ill behaviour. But having spent 10 years of my life working for Pret is my biggest regret with my future unclear and my mental health in shambles.
There are many good things in Pret, but the bottom line is that the senior leadership and HR are far removed from the painful reality on the shop floor. And yet, they do know very very well how brutal it is, that’s why most staff (mainly British) are aiming for jobs in HQ, away from the “front lines” of the business. Yes, they do what they call “Buddy Days” where once a year a staff member from HQ works in a Pret shop and kitchen for a day, BUT when they do, the management and teams in the shops are well behaved like this is their dream job. When the “buddy” is gone, it’s back to business as usual. I’ve always disliked this hypocrisy. And also with the HQ staff coming in at 8 or 9am, often being late and starting their “shift” with breakfast. Whereas if I would have been the manager, I would have explained to them to start their shift at 5am sharp, or whichever time a particular shop starts the shift as this varies from shop to shop. But they would have needed to be ready in uniform on the dot! If they would have been late, I would have send them home or have a serious talk, just like shop leaders do with a new person, no mercy! Welcome to reality in a Pret shop! Now, enter the “fun”.
But unfortunately as a Team Leader the only thing I was able to do, was asking the HQ staff to do the dirty work of changing the bins, checking the toilets for cleanliness, smiling at customers non-stop, having the shop in an immaculate state at all times, stop using their mobile phones on the shop floor and putting it in the locker like the rest of the team was required to, get their fingernails dirty and cracked, and their feet hurt with their backs “broken”… I’m sure they hated my gut, but I loved and cared for my team who worked their hearts out oftentimes in pain and sometimes in tears. So, an HQ staff surely can pass a few hours a year doing just that.
I typed up a transcript on your thoughts: JAB Holdings Buys Pret A Manger and included it here word for word. Please bear with any mistakes as I am not a professional in typing transcripts, I type with 2 fingers only.
Transcript – I highlighted a few things which I am commenting on at the bottom of this open letter:
“What I wanna try today is something a little bit different, a short, sweet response to a piece of news in our industry.
Today I want to talk about JAB buying Pret A Manger, which is both interesting and incredibly, incredibly boring.
What makes it interesting? They (JAB) paid or is going to pay £1.5 Billion for Pret A Manger, which is a lot for a business that makes “only” a £100 Million in profit a year. They’re paying 15 times that, it’s a 15x multiple. Which implies there’s gonna be really, really fantastic growth coming.
Now, Pret kind of have about 500 locations, most of which are in the UK, most of which, most of that profit is actually in London. And while they’ve expanded in the U.S., that hasn’t gone quite as well as you’d think.
So, if they struggle to expand, well, why is there this huge potential?
Pret makes about £880,000,000 a year as a business, and if you work this out, this is kind of interesting: Each Pret location on average makes £1.75 million a year. Now, for the kind of business they have, where they sell questionable coffee and sad little triangles, called sandwiches, that seems like an enormous amount of money! Considering what they sell is not particularly expensive.
And this is the thing that’s interesting, this is the thing where we don’t give Pret enough credit and enough attention. Yeah, I don’t really like the product in terms of its coffee, for sure! But, they’re all about speed! Pret values their customers’ time. Perhaps in a way not many businesses do. They have a publicly stated goal of serving you within 60 seconds of you walking in the door. And I think they do a pretty good job of getting there.
And that is hugely important to an enormous number of people. That’s how they’re able to process as many people as they do. Sure, they have a lot of people on anyone time, but they’re still making good profit, they’re still making 11-12% each year in terms of Net profit. So, their business model is pretty sound. But they value people’s time.
And if you have a coffee shop and you’re looking at this deal and you’re thinking, how is that happening? Why would you buy this business? It’s because the model is actually pretty interesting. In the world of specialty we haven’t really, really valued our customers’ time. We’ve been very product focused. And as a result, I think we haven’t valued people’s time adequately. We’ve made people wait, often wait just far too long for what they’re ultimately getting. And in doing so, I think we’ve excluded a large number of people, who either value their time very highly or just aren’t willing to invest that kind of time that we ask of them. And I think if we took a little bit of that from Pret, it would allow us to access a much larger community of people who’d be interested in what we’re doing.
And right now one of the biggest challenges specialty faces is growing its audience. Right now the audience isn’t really growing but the number of Cafes is. We’re all competing for the same customers instead of finding new customers. And I think embracing a little bit of what makes Pret so incredibly valuable, a multi-billion pound company, embracing, valuing our customers’ time, will be extremely worthwhile.
So, that is a little bit of business talk for today…”
END of transcript.
Here is the screenshot of my comment and your response which I can only see when I am logged into my YouTube channel:
I also pointed you to another comment further below your video from a YouTuber called RPQ who left this comment in the beginning of July 2018:
My response to your thoughts from the transcript:
“What makes it interesting? They (JAB) paid or is going to pay £1.5 Billion for Pret A Manger, which is a lot for a business that makes “only” a £100 Million in profit a year. They’re paying 15 times that, it’s a 15x multiple. Which implies there’s gonna be really, really fantastic growth coming.”
Yes, it means that the shop and kitchen staff will be squeezed even worse now than they already are. They made and will make this growth happen at a high personal price with their mental and physical health. I have a roaring tinnitus myself still and can only reduce it by seeking quiet places. And the price I paid with my mental health you have already read on my blog here. I have no illusion anymore and know that my way to recovery will be a very long one. And just in case I won’t make it, you and many more people now will not be able to say that you didn’t know what and who made this “fantastic growth” happen!
Quote: “And this is the thing that’s interesting, this is the thing where we don’t give Pret enough credit and enough attention. Yeah, I don’t really like the product in terms of its coffee, for sure! But, they’re all about speed! Pret values their customers’ time. Perhaps in a way not many businesses do. They have a publicly stated goal of serving you within 60 seconds of you walking in the door. And I think they do a pretty good job of getting there.”
I want to give credit to my countless ex-colleagues with whom I worked shoulder to shoulder, day-in day-out, in an intensely stressful, bullying, discriminating and ungrateful work environment, all my colleagues and myself who made this success and the wealth of the few at the top happen.
Pret does not value customers’ time, Pret, as most businesses, value customers’ pockets! And it is disheartening that you and most people seem blinded by the age-old reality in business, that time is money, and the quicker you get customers in and out the store, the more money flow is happening … faster! But who makes that happen? Who pays the price? If a company has NO regard for the health and value of their staff who are human beings but driven like machines, valuable humans as much as their customers are, than I question the motif of their business.
Sure Pret pays a little more, gives more holiday, puts on elaborate parties etc. and now even giving £1000 incentive to retain and gain staff, but if Pret wouldn’t give more incentives and benefits they would hardly have anyone working for them, as the job is WAY too stressful and harsh. Even if you are bereaved, you are not safe and are tricked and trapped as you have learned my story. I used to be an enthusiastic person, working highly motivated, and I am not an old person, but I feel like I am in my 70s, ready to call it a day. My old self is gone after my brother died with the added turmoil in Pret.
Quote: “And that is hugely important to an enormous number of people. That’s how they’re able to process as many people as they do. Sure, they have a lot of people on anyone time, but they’re still making good profit, they’re still making 11-12% each year in terms of Net profit. So, their business model is pretty sound. But they value people’s time.”
Again, they value people’s money, and time IS money, as you word it perfectly: “they’re able to PROCESS as many people as they do…” Why do I have to think of cattle being lead to mass slaughter when I read the word “process”?!
Quote: “Sure, they have a lot of people on anyone time, but they’re still making good profit”
No, they don’t have “a lot of people” at anyone time, 10 years of working understaffed to maximize profits has had me never ever wanting to work fast again, not to mention not being able to work currently. You may ask, why did you stay so long? Simple, I had a life outside of Pret where I had friends and projects I was passionate about. I was healthy, strong and able to mostly leave the stress at work. My life and personal projects were overriding the stress from work. And in a nutshell I and many people are like frogs that are sitting in a pot of warm water by being lulled in by good PR and where Pret’s CEO calls the company “family”. The PR is the warm water and very slowly the heat is turned up where we don’t realize that we are being cooked alive! I certainly am well over cooked, chewy and tasteless like rubber now. And just like a used and stained Pret paper cup that is of no use anymore, I landed on a pile of rubbish! When my brother died and I was mistreated on top of it, tricked and trapped by HR, they crossed a line, and I was turning ill.
Quote: “In the world of specialty we haven’t really, really valued our customers’ time. We’ve been very product focused. And as a result, I think we haven’t valued people’s time adequately.”
Okay, here is the challenge and my plea: please could you STOP only valuing customers’ pockets and being product focus, and start valuing the staff who make all the products and who are the ones serving customers? Employees who are left behind in this cut throat greedy multi-millionaire business!
Someone please stop this modern-day slavery and stop closing your eyes to what is REALLY behind successful businesses. As a rule of thumb: if it sound too good to be true… it isn’t! Someone, somewhere is always paying the price for this business model you so admire, and it is the majority who pay for the rewards of the few on the top. And if the few only reap the rewards that the many make happen, ask yourself if you really want this kind of business model. If you are on the side of greed, this indeed is very good for you. If you are on the side of most human beings, seeking a fair share in life by contributing with an honest hard working job, this indeed is too good to be true and the cost, the bill will come later. And we all know who’s paying for it.
Quote: “And in doing so, I think we’ve excluded a large number of people, who either value their time very highly or just aren’t willing to invest that kind of time that we ask of them.”
Well, you exclude an even larger number of people who are the staff making this happen, oftentimes at their physical and mental costs.
Quote: “And right now one of the biggest challenges specialty faces is growing its audience. Right now the audience isn’t really growing but the number of Cafes is.”
Yes, unfortunately every business wants a slice of the cake, and the crumbs are dished up by those who break their backs to make that cake.
The biggest challenge is to find a way to stop the greedy ways of the few and to really make their workforce part of the success and with it really leave behind a legacy that shows that businesses can indeed go the right way. As Gandhi so poignantly said: “There is enough for everyone’s need, but not enough for everyone’s greed.”
I can only say that when Pret fired me in my ill conduct out of trauma, with their HR tricks while my dad was in intensive care, just out of a coma, Pret fired me right into activism. My dad has died now and I would have preferred to write a blog on how amazing the company I worked for has treated me in my bereavement and trauma.
Mr. Hoffmann, could you look deeper, please, on what really is behind a successful business model?
Thank you for reading.
Edit, 22.07.2018: I can imagine that either you have been contacted by Pret or you contacted Pret for an explanation. I can tell you how Pret responds. Pret responds by sweet talking their way out of this and victimizing me into the corner of mental illness (which happened to me while working in Pret during mistreatment in bereavement).
They will lull you in with numbers and their annual staff questionnaire and awards, which is a flawed system because shops cheat by Pret-ending (pardon my word-game, couldn’t help it) to be team members, partaking in the questionnaire answering questions positive. I have declined doing the questionnaire and yet my shop’s result was a 100% participation, even though I didn’t participate in this voluntary questionnaire.
They will have advised you to not respond in the hopes this goes away.
If you or the public want to be lulled in by good PR that is your prerogative. But you and the public won’t be able to say in the future that you didn’t know about the tactics and work conditions in Pret.
I still suffer and at times hold on to mere life not trying to give up, and many others struggle, no matter how sweet the words of Pret’s leadership and HR will be trying to talk their way out of this.
Bullying, and especially bullying bereaved employees is unacceptable and dangerous to people’s lives. I will never be silent again.
Thank you for reading.
I worked at Pret A Manger and survived systemic workplace bullying during bereavement that involved HR, the top leadership, HQ and even the now “retired” former CEO Clive Schlee. I declined 4 settlement offers if I am silent about my ordeal. But I rather starve and speak out to help others. For an overview of important blog entries of my experience with Pret, please visit “My Ordeal with Pret A Manger”. The little arrow to the right next to each heading will lead directly to the post.
I tell my story for the first time verbally in below audio player interview on a podcast by The Adam Paradox, and wrote an article in the Scottish Left Review.
Thank you for reading/listening.
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