Pret A Manger

Frances X. Frei; Rick  Goldberg; Stephanie  van Sice

Case | HBS Case Collection | April 2012

Pret A Manger

by Frances X. Frei, Rick Goldberg and Stephanie van Sice

Abstract

Pret A Manger, a London-based chain of sandwich shops, was known for its fast, genuine service and pre-packaged sandwiches prepared on-site daily. Instructed by its board to grow at 15 percent per year, Pret considered opening "twin" shops in locations too small to contain kitchens; these shops would receive sandwich deliveries throughout the day from a nearby "parent" shop. Would Pret's employees and customers accept twin shops or view them as counter to the Pret culture? Through this decision point, the case frames a discussion about how companies build service models to reliably deliver customer service excellence. The case also helps students understand the role of employee management systems in creating consistent service experiences and introduces a set of innovative employee management practices.

Keywords: Customer Service Excellence; Growth Planning and Management; Employee Performance Management; Information Management; Production Planning; Employee Attitude Development and Empowerment; Employee Retention; Leadership Development and Career Planning; Service Delivery; Growth and Development Strategy; Business Model; Innovation and Invention; Employees; Performance; London;

Language: English

Format: Print

20 pages

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Citation:

Frei, Frances X., Rick Goldberg, and Stephanie van Sice. "Pret A Manger." Harvard Business School Case 612-033, April 2012.

Credit and charge card issuer American Express (Amex) had developed a strong reputation among consumers due in part to its Membership Rewards (MR) loyalty program, first established in 1991. Through MR, all Amex cardholders could accumulate and redeem “points” based on how much they spent, while customers with Amex’s Gold and Platinum Cards received additional perks. By 2016, however, the U.S. credit card market had become increasingly competitive, with many credit card companies increasing their sign-on point bonuses for new customers. Chris Cracchiolo, Amex’s vice president of U.S. loyalty, strategy, and global partnerships, had to decide how to position the MR program in the face of this competition. Should Amex begin offering more competitive sign-on bonuses and point redemption rates, or would this dilute the company’s strong brand?

Provides a hotel context in which to explore the link between customer loyalty and financial performance, using four years of hotel data. Challenges students to find the extent of the relationship between loyalty and performance.

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Pret A Manger

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