The chief executive of Pret a Manger has called for tax incentives aimed at encouraging employers to hire more young people, citing the impact of elevated taxes on businesses, particularly in the hospitality sector. Pano Christou made his remarks during The Times’s Future of London event, highlighting the pressures companies face under the current tax regime since the Labour government took office.

Christou emphasized that reductions in national insurance contributions, especially for younger workers, could help address the issue of youth unemployment and ease operational burdens on employers. “Some tax breaks on national insurance, especially younger people, which encourage employers to bring in people” would be beneficial, he said, describing current business rates as outdated.

The Pret chief executive, who began his career in hospitality at age 16 and has led the sandwich chain for seven years, described the past five years as “very challenging” for the industry. He noted that maintaining a presence on the high street has become increasingly difficult as competitors have closed, reducing consumer footfall and affecting overall business health.

Pret a Manger, owned since 2018 by German investment firm JAB Holdings, continues to position itself as a British brand, with Christou expressing ambitions to expand the chain to 1,000 stores in the UK and further grow its footprint in the United States and France. The company reported a £37 million profit in the UK last year and experienced its strongest start to the financial year in a decade.

Despite these positive indicators, Christou acknowledged growing pressures on pricing, noting that customers are feeling the strain from tax-driven cost increases and rising retail crime. The company has significantly increased expenditure on security measures over the past five years, now investing up to several million pounds in staff training, CCTV, and a dedicated security guard network.

“There is an inherent challenge and problem that is growing at a real pace,” Christou said, adding that concerns about retail crime rank among the top issues faced by chief executives nationwide.

Nevertheless, he expressed cautious optimism about Pret’s future growth prospects amid a challenging macroeconomic environment. “From a growth perspective, we’re very confident on the future,” he remarked, underscoring the company’s commitment to navigating current difficulties while pursuing expansion.