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  • what I want to try today is something a little bit different?

  • A short, sweet response to a piece of news in our industry today.

  • I want to talk about J B Buying Preta mon J, which is both interesting on dhe.

  • Incredibly, incredibly boring.

  • What makes it interesting?

  • They paid or going to pay 1.5 billion for freedom Andrzej, which, which is a lot for a business that makes only 100 million in profit a year.

  • They're paying 15 times that.

  • It's a 50 next multiple, which implies there's gonna be really, really fantastic growth coming now.

  • Prep can't have about 500 locations, most of which are in the UK, most of which most of their profit is actually in London.

  • And while I've expanded in the US, that hasn't gone quite as well as you'd think.

  • So if they've struggled to expand well, why is that?

  • This huge potential prep makes about 818 year as business, and if you work this out, this is kind of interesting.

  • Each publication, on average, makes 1.75 million a year now for the kind of business they have, where they sell questionable coffee and sad little triangles called sandwiches.

  • That that seems like an enormous amount of money.

  • Considering what they sell is not particularly expensive.

  • And this is the thing that's interesting.

  • This is the thing where we don't give pret enough credit and enough attention.

  • Yeah, I don't really like the product in terms of its coffee, for sure, but they're all about speed.

  • Pret values their customers time, perhaps in a way that not many other businesses do.

  • They have a publicly stated goal of serving you within 60 seconds of you walking in the door, and I think they do a pretty good job of getting there, and that is hugely important to an enormous number of people.

  • That's how they're able to process as many people as they do.

  • They sure they have a lot of people on any one time, but they're still making good profit.

  • They're still making 11 12% each year in terms of net profit, so their business model is pretty sound, but their value people's time on.

  • If you have a coffee shop and you're looking at this deal and you're thinking, how is that happening?

  • Why would you buy this business is because the model is actually pretty interesting in the world of specialty.

  • We haven't really, really valued our customers time.

  • We've been very product focused on.

  • As a result, I think we haven't valued people's time adequately.

  • We made people wait often wait just far too long for what they ultimately getting.

  • And in doing so, I think we've excluded a large number of people who either value that time very highly were just aren't willing to invest that kind of time that we ask of them.

  • And I think if we took a little bit of that from prepped, it would allow us to access a much larger community of people who'd be interested in what we're doing on right now.

  • One of the biggest challenges specialty Faces is growing its audience.

  • Right now, the audience isn't really growing, but the number of cafes is.

  • We're all competing for the same customers instead of finding new customers.

  • And I think embracing a little bit of what makes prep so incredibly valuable, a multi £1,000,000,000 company embracing valuing our customers time will be extremely worthwhile.

  • So that is a little business talk for today.

  • If you like this, let me know.

  • Leave a comment down below.

  • If you want to talk about something else in the future given, like if you think it's worth me doing more of these, I'll try and respond quickly when pieces of news in our industry come out.

  • I mean, if you if you didn't like it, don't don't press that dislike button that would make me you feel bad He goes for a jog.

  • Looks sad today.

what I want to try today is something a little bit different?

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