JAB's Pret Play: Why This IPO Timing Makes Me Nervous

By HOAR Team 6 June, 2025 5 mins read 113 Views

So JAB Holding just confirmed what we've all been whispering about in finance circles for months.

They're planning to float Pret A Manger on the stock market. And honestly? The timing feels... weird. Luxembourg-based JAB dropped £1.5billion on the sandwich chain back in 2018, right before the world went completely sideways. Talk about bad luck.

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The Pandemic Nearly Killed Them

Remember 2020? Of course you do. While we were all learning what "unprecedented times" meant, Pret was hemorrhaging money like a broken ATM. They posted a £343million loss that year because their entire business model depended on office workers grabbing lunch and commuters needing their caffeine fix. Suddenly, everyone was working from their kitchen tables in pajamas.

I remember walking past empty Pret locations in central London that summer. Ghost towns.

But here's where it gets interesting - they didn't just sit there and cry into their oat milk lattes. The company launched cut-price food deals and that coffee subscription service (which, let's be honest, probably saved them). Sales jumped 20% in 2023. Not bad for a near-death experience.

From Minicab Driver's Son to CEO

Can we talk about Pano Christou for a second? This guy started as an assistant manager at 22 in some central London shop. His dad drove minicabs. Now he's running the whole operation and pulling in over £400K annually. That's the kind of story that makes you believe in social mobility again.

Growing up in Tooting and ending up as CEO of an international chain? That doesn't happen by accident.

JAB's Bigger Game Plan

Here's what's really going on though. JAB isn't just about sandwiches and doughnuts anymore. They own Krispy Kreme, Keurig Dr Pepper, and now they're eyeing insurance and asset management. Smart move, actually. Consumer brands are fickle - one food poisoning scandal or trend shift and you're done.

They're even considering bringing in a pre-IPO investor before the main event. Translation: they want someone else to share the risk.

JAB said it themselves: "As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor." Corporate speak for "we're not stupid enough to go this alone."

The Numbers Don't Lie (But They Don't Tell Everything)

Pret's got 12,500 staff across 700+ locations in 21 countries. That's impressive scale. They've been around since 1986, so they're not some flash-in-the-pan startup.

But I keep thinking about those pandemic losses. What happens when the next crisis hits? Remote work isn't going anywhere. People are still grabbing lunch at home half the week.

They brought in José Cil as chairman last month - former Restaurant Brands International CEO. That's serious firepower for an IPO push.

Banking Chaos & Housing Reality Check

Speaking of things going sideways - NatWest's app crashed yesterday, locking out thousands of customers. Over 3,000 outages reported on Downdetector. Their excuse? An update they made the day before. Classic.

Meanwhile, house prices dropped £1,150 last month according to Halifax. That's only 0.4%, but still. Property values are up £7,000 over the year though, so don't panic yet. Annual growth slowed from 3.2% in April to 2.5% in May.

Everything's connected in this economy. When people can't access their bank accounts or worry about house prices, they don't buy expensive sandwiches.

JAB better hope they've timed this IPO right. Because if they haven't... well, let's just say £1.5billion is a lot of money to lose on lunch.

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Statistics

According to a survey by the Financial Industry Regulatory Authority (FINRA), about 66% of Americans could not correctly answer four basic financial literacy questions.
As of 2021, the average American household had approximately $8,400 in credit card debt, according to Experian.
In 2020, the average retirement savings for Americans aged 60 to 69 was approximately $195,000, according to Fidelity.
According to the World Bank, around 1.7 billion adults worldwide remain unbanked, lacking access to basic financial services.
A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.

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How To

How To Understand and Use Credit Cards Wisely

Understanding credit cards involves knowing how they work, including interest rates, fees, and benefits. Choose a credit card that aligns with your spending habits, whether for rewards, cash back, or low interest. Always pay your balance in full each month to avoid interest charges and maintain a good credit score. Use your card for regular expenses to build credit but avoid overspending; stick to your budget. Regularly check your statements for errors and fraudulent charges. Finally, understand the terms of your card, including rewards expiration and annual fees, to maximize benefits while minimizing costs.