Companies That You Expect to Disappear Soon

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Bald Rick

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So £20 million a week is normal. 530 branches, average say 6 days a week (assuming 50% of weekdays on Saturday and Sunday) equates to £6,290 per branch per day. Assuming an average sandwich is £3.50 and that the average customer buys one of coffee / crisps / cake / fruit with it, so £5 total spend, that’s about 1,250 customers per store per day. Assuming they open 12 hours a day, it’s about 100 customers an hour or one every 40 seconds or so. Sounds about right to me
I’d say the average spend in Pret is nearer £6-7. In London, more. They also do ‘Pret delivers’ for office lunches etc, which is a fair bit of trade for some branches.
 

Bald Rick

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I agree, and salads. But for whatever reason, I think there are 2 Prets in Sheffield, but probably around 20 Costa's. Plus Starbucks and Nero. They just aren't as numerous up North.
Which is odd, as their coffee is cheaper than those three, and miles better than Costa.
 

Jamesrob637

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That sounds optimistic to me and I work in a very similar business and have worked in other ones too.

Some of their sites are in airports and other travel locations which usually have much longer trading hours than 12 hours, however.

Remember you lose 20% of takings in tax pretty much straight away, but that is still quite optimistic (probably double what I would expect an average store to take per day).



I do see them as quite a 'Southern' thing, it's more Greggs and Coffee shops up here, there is usually only one or two Prets per city.
Manchester had loads of branches of Pret! Then again the centre of Manchester is a bit more 'Southern' than a few places actually in the South! Plymouth and Exeter only have one branch apiece and they're hardly villages, Plymouth especially!
 

Hadders

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So £20 million a week is normal. 530 branches, average say 6 days a week (assuming 50% of weekdays on Saturday and Sunday) equates to £6,290 per branch per day. Assuming an average sandwich is £3.50 and that the average customer buys one of coffee / crisps / cake / fruit with it, so £5 total spend, that’s about 1,250 customers per store per day. Assuming they open 12 hours a day, it’s about 100 customers an hour or one every 40 seconds or so. Sounds about right to me
Add at least 50% to those prices.
 

trebor79

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I never really understood "Go Outdoors." Always thought they were extremely expensive, and that was before you take into account that stupid membership card that they want you to have.
Go Outdoors has been a basket case for years. I was amazed JD bought them
I ordered since sits from them the weeks ago. They were hugely discounted (70%) provided I paid a fiver for a discount card. Nothing arrived. Eventually they responded to my second query saying the shoes were or of stock, but don't worry the discount card is being couriered to me (an additional £4.50) and the shoes refunded. I went a bit ape and they've refunded the courier charge and say they will refund the card of I send it back. Hasn't arrived as yet!
My first experience of them.i won't be repeating it.
Their customer service phoneline is closed. That and the slow response to email tells me they've furloughed their customer service staff whilst still flogging stuff. I guess that demonstrates their contempt for the customer.
 

317 forever

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Which is odd, as their coffee is cheaper than those three, and miles better than Costa.
I also like Pret coffee best, followed by Nero.

Manchester had loads of branches of Pret! Then again the centre of Manchester is a bit more 'Southern' than a few places actually in the South! Plymouth and Exeter only have one branch apiece and they're hardly villages, Plymouth especially!
Pret have also expanded in Leeds city centre recently, with new branches at the station, and Trinity and Victoria Shopping Centres.
 

317 forever

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Of the chains, agreed. If you’re ever at Victoria though, Hermanos next to the bus station is the best coffee in London (in my opinion!)
I might try it, especially if I then have a Pret another time that day.

Looking them up on line, they have a few other branches mainly in central London too.
 

FQTV

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Anecdotally, Pret seems to have saturated/exhausted its potential in a number of major cities for the office worker and travel markets and has, in the last few years, sought new ones such as students and provincial shoppers.

Anecdotal observation suggests that hasn’t been wholly successful, so if the office market is in doubt too, there’s going to be trouble.

I do like quite a lot of their product range, but it’s premium discretionary and that’s a great place to make money in the good times, but a bit dodgier when belts tighten.

Greggs, by contrast, seems to be a good bit steadier.
 

Mcr Warrior

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Are these actually companies that are expected to disappear soon? (As opposed to closing down a number of marginal branches).
 

Mcr Warrior

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Well, it’s got about three quarters of a billion pounds loaned to it, and it sells butties....
Fair shout! Seems to be a pattern in that many of the problem companies are those in retail that have been loaded with debt, whose "assets" consist of leased shop units and "goodwill / intangibles" (invariably this is business speak for having historically paid over the odds for something) and are wholly reliant on (now much reduced or even non-existant) cashflow and profit margins.
 

Iskra

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So looking at it another way, each branch is on average in £1.4m of debt. That’s a lot of sandwiches.
But is it real debt or has it been saddled with it from a foreign-registered parent company to avoid paying tax on profits? At work so I don’t have time to look into it, but that’s not an abnormal business practice...
 

FQTV

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As a follow-up to the Go Outdoors posts, the company has now been through a pre-packed administration and has been 'bought back' by JD Sports.

Next up: TM Lewin. Expecting a pre-pack that could see the majority of its sixty six stores up for disposal.
 

LOL The Irony

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As a follow-up to the Go Outdoors posts, the company has now been through a pre-packed administration and has been 'bought back' by JD Sports.
If you allow a business to fail/buy an ailing business, yet do little to nothing to turn it's fortunes around, you shouldn't be allowed to buy it back in a pre-pack deal IMO.
 

Mojo

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Byron Hamburger restaurant company has filed a notice to appoint administrators.

The company has been struggling for a few years and has closed a small number of restaurants over the past few years.
 

Jamesrob637

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Byron Hamburger restaurant company has filed a notice to appoint administrators.

The company has been struggling for a few years and has closed a small number of restaurants over the past few years.
Probably why they kept featuring on O2 Priority - to lure more people in knowing that they'd get something of a bargain on normal prices! I only availed of this once - it was fine for the discounted price but wouldn't have been happy at normal prices.
 

johntea

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I think a lot of these type of restaurant will be in big trouble - most have tried having a presence on Deliveroo or similar but charging the same price as eating in the restaurant which I don't really understand, might as well order from my local takeaway - 4 quarter pounder burgers (with chips) and 2 cans of pepsi...£13.00, probably around the cost of just one of their burgers!
 

johntea

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A railway related one...SSP to cut up to 5,000 jobs (55% of the workforce)...apologies for the news source!


I suspect their takings will have fallen off a cliff, and even passengers slowly coming back won't help as a lot of the business travellers who wouldn't care less about paying over the odds for a sandwich will be sat at home
 

FQTV

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A railway related one...SSP to cut up to 5,000 jobs (55% of the workforce)...apologies for the news source!


I suspect their takings will have fallen off a cliff, and even passengers slowly coming back won't help as a lot of the business travellers who wouldn't care less about paying over the odds for a sandwich will be sat at home
I suppose that ‘Fast Food’ retailing at transport locations will face a particular challenge if longer term social distancing slows down the service.

Ultimately, unlike being five minutes late back to a desk after a lunch break because of slower service at a high street Pret, there’s going to be a greater likelihood of the purchase being abandoned altogether if a train, ‘plane, bus or ferry will be missed.

Given that lots of railway station retail is in fairly cramped, high-traffic non purpose built corners and thoroughfares, I can see that operators would be concerned.

Now, if only there was a way to feed and water travellers while travelling, rather than pre-departure .
 

trebor79

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Would anyone actually miss Upper Crust?

Just a totally bland brand to me. Same with Pumpkin.

Obviously I do have sympathy for the staff though.
The sandwiches are quite nice. Bit pricey though, and some of the limited edition ones they do round Christmas time etc are just absurdly expensive.
I find the staff are usually a bit surly, but dishing out 2,000 sandwiches a day isn't going to be the most engaging of occupations I suppose.
 

FQTV

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The sandwiches are quite nice. Bit pricey though, and some of the limited edition ones they do round Christmas time etc are just absurdly expensive.
I find the staff are usually a bit surly, but dishing out 2,000 sandwiches a day isn't going to be the most engaging of occupations I suppose.
In the BBC file picture, just creeping into the shot on the left, is one of the pasty kiosks.

These always strike me as hideously expensive - unless I have mis-glanced as I have looked (and kept on going) some of their pasties are about a fiver.

They also look to be significantly comprised of the pastry crimp, and I don't think that the fillings were lobster and Oscietra caviar.

I wonder how they'll get on, although the're owned by Samworth Brothers, who also own petrol station pasty brand Ginsters (among other operations), so I assume that the basic margin is OK, and it's reportedly bolstered by pay rates at their production facilities........
 

Tetchytyke

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If you allow a business to fail/buy an ailing business, yet do little to nothing to turn it's fortunes around, you shouldn't be allowed to buy it back in a pre-pack deal IMO.
Pre-pack administration is a scourge on society. Nothing more, nothing less. Business insolvency rules are far too lenient in this country, which is why you see the same names over and over again as directors of failed companies. That's the cost of "entrepeneurship".

I suspect their takings will have fallen off a cliff, and even passengers slowly coming back won't help as a lot of the business travellers who wouldn't care less about paying over the odds for a sandwich will be sat at home
SSP pay very high rents to Network Rail, which will have more to do with the desire to close outlets and consolidate the business.
 

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