Pret a Manger is in talks to buy its rival sandwich chain Eat as part of plans to expand its specialist vegetarian operation.
The London-based coffee shop firm is understood to be in line to buy the majority of Eat’s 94 stores to step up expansion of Veggie Pret.
The majority of Eat’s outlets are in London but it also has sites in key towns and cities around the UK, including Birmingham and Manchester, as well as airport stores in Bristol, Edinburgh and Heathrow.
Pret has four vegetarian outlets, three in London and one in Manchester. It is keen to expand the operation due to rising demand for plant-based meals, according to the London Evening Standard, which first reported the deal.
Pret said: “We never comment on rumour or speculation.”
Peter Backman, an independent restaurant consultant, said the deal suggested Pret believed it could tempt different customers with Veggie Pret enabling it to expand even in London where it already has a lot of outlets. He said buying Eat stores would give it room to experiment while reducing competition.
Pret is keen to capitalise on the growing vegan and vegetarian market which has prompted the likes of Waitrose to introduce specialist aisles and big chains such as Marks & Spencer, Tesco and Sainsbury’s to push vegan ranges.
According to Waitrose, a third of UK consumers say they have deliberately reduced the amount of meat they eat or removed it from their diet entirely. One in eight Britons are now vegetarian or vegan, and a further 21% say they are flexitarian – where a largely vegetable-based diet is supplemented occasionally with meat.
The possible Eat deal also flags potential consolidation in the takeaway food market where growth is slowing and competition fierce as supermarkets and coffee shops vie with the likes of Pret, Itsu, Wasabi and Leon.
The proposed deal comes after Eat was put up for sale by its private equity owners Horizon Capital in February. It made a £17.3m loss in the 12 months to June 2018 and a £18.9m loss the previous year.
Overall sales slipped more than 4% to £94.9m as cafes and restaurants faced heavy competition. A slowdown in spending has also led consumers to remain cautious amid Brexit uncertainty.