British Sandwiches Stack up Well

Although the Subway chain still leads the fast casual sandwich market, younger upstarts are emerging with new styles, flavors and ingredients ready to shake up the hierarchy.

Bloomberg reports that in the sandwich segment, British brand Pret A Manger (Pret), known for organic coffee and natural food, is looking to disrupt the sandwich segment with a U.S. initial public offering. Unlike the customizable soft sub sandwiches that Americans know and love, Pret’s products are a mix of pre-packaged (but freshly made) nine-grain sandwich triangles, salads and premium ingredients on baguettes. Some of Pret’s offerings—like a vegan Chakalaka Wrap, inspired by South African flavors and filled with roasted butternut squash, kale and coconut yogurt—may seem exotic for American tastes, but investors are bullish on Pret’s chances to go big in the States.

According to Bloomberg, Bridgepoint Advisers sees Pret’s brand identity of upscale ingredients and wholesome, clean food as a $1.9 billion valuation and puts Pret on the same level as Starbucks Corp., Shake Shack Inc. and Panera Bread Co.

Even if Pret never reaches Subway-level domination, it’s joining a league of smaller, more sophisticated fast casual sandwich brands like Chicago-based Potbelly Sandwich Works, known for quirky décor and hearty toasted sandwiches. California-based Mendocino Farms Sandwich Market is growing its brand with house-made seasonal specials and “foodie favorites” made with locally sourced ingredients and an upscale edge. All these new players prove that competition can bring innovative flavors and styles to the sandwich market, and sandwich makers will need to go beyond the pedestrian ham-and-cheese to stay in the game.

Grocerant-Ready Ideas:

• Weekly sandwich specials focused on rotating global flavors
• Transparency and clean labels, even with deli meats and cheeses
• Flavor experimentation via house-made relishes and condiments