Pret a Manger makes staff pay cuts permanent

Pret a Manger has told its staff that a temporary pay cut will now be made permanent as trade remains "significantly below" pre-Covid levels.

The sandwich chain stopped paying workers during their breaks last September in an effort to cut costs.

However, it has now told workers that the measure will be kept in place.

Pret said: "This is in no way a reflection of the hard work of our teams and we're incredibly grateful for their dedication and commitment."

The company also confirmed earlier on Thursday that a special bonus for good service, which was paused last year and reinstated in April, will continue at a reduced rate.

However, it subsequently reversed that decision and from September the bonus will return to its original level.

In an email to staff, Pret's chief executive Pano Christou said: "The business is still in recovery but it's important that we continue to invest in and support our teams however we can."

Commenting on the changes to pay, Mr Christou said: "The most important thing for me throughout the last year has been to protect as many Pret jobs as we can.

"However, we also promised to review these changes when our sales improved. Unfortunately it's taking longer than we had hoped to get sales back to what they were before the pandemic, which is why we've had to make some difficult decisions about how we reward our hard-working teams."

The Guardian has reported that staff are considering strike action following the changes. Pret declined to comment on whether staff were planning to walk out.

But it said: "Like others in the hospitality industry, the pandemic had a big impact on our business, so last year we adjusted our business model. The business is still trading significantly below pre-pandemic levels, but we continue to review our benefits."

A spokesman for Pret said there would be a pay review in April next year.

Despite the UK economy reopening in recent months, many people continue to work - and eat their lunch - at home.

Pret has tried to counter the drop in trade by introducing new lines of business such as its coffee subscription service, allowing customers up to five cups of coffee a day for a £20 monthly fee.

It is also trialling cafes within the likes of Tesco to adjust its business "to a new way of living and working".

Since the beginning of the pandemic, Pret has closed 39 shops in the UK, as well as 33 EAT outlets, which it also owns. It also shut 22 Pret sites in the US.

It has cut 3,771 jobs in the UK, according to its most recent accounts, as well as 1,292 roles in the US at a cost of £15.3m.

Pret received a capital injection of £185m last year from shareholders and has access to a finance facility of £150m which runs until December this year, but can be extended for a further six months.