Empty city centres are a crisis for cafés—and also an opportunity

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Firms such as Pret and Wasabi are dealing with a conundrum: how to tear up a business model and draw up a new one overnight

’s London office had a wealth of venues from which to get lunch. Within a five-minute walk there were two burger chains ; two fast-casual outfits with the names of Frenchmen ; three sushi suppliers ; and four sandwich shops .

In normal times, established companies face three big obstacles to changing how they work, says Jessica Spungin of the London Business School. One is that if things are running smoothly, managers see no need to change. Another is that even if change is desirable, fears remain that new lines of business will cannibalise old ones. And then there is the difficulty of undoing decisions that have already been made, like long-term leases on high-street shops. Pret exemplifies these problems.

For city-centre lunch outlets that means following customers to where they now spend their time: the suburbs. Pret has opened a “dark kitchen” in Colindale, in deepest north London, which produces food only for delivery. It has started selling coffee beans on Amazon. And it introduced a subscription service that offers up to five coffees a day for £20 a month, which is designed to entice customers back into shops and to collect data on consumer behaviour.

 

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