Annick Van Overstraeten (Le Pain Quotidien): “There is huge potential for premium in emerging markets”

New locations from Peru to India and an AI version of founder Alain Coumont: Le Pain Quotidien is up and at it again. After a few difficult years and an unrelenting pandemic, the bakery and lunch formula is back in full expansion mode.

“I’m not easily fooled”

At the Captains of Retail on 11 September, CEO Annick Van Overstraeten, seasoned in the Belgian food and hospitality sector, will share how she steered the chain through turbulent waters and what she has learned in all these years. “I hope I know the sector by now, I won’t be fooled easily. That is pretty much the only advantage of getting older,” laughs the experienced business leader. “Everywhere there is a fight for consumers and a search for balance. Still, the challenges are different every time. You can’t copy-paste.”

So is there no common denominator in her career? “Whether it’s Quick, Leonidas, Lunch Garden or Le Pain Quotidien, all are strong, quality Belgian brands. Even though people abroad may not necessarily recognise them as Belgian. But does that matter? Our Belgian modesty is actually an asset. We don’t have big egos. Belgium is a difficult market, which means it’s a very good test market.”

AI supports franchise strategy

Le Pain Quotidien is perhaps one of the few truly international chains ‘made in Belgium’. This is partly why Alain Coumont (founder and creative director) is getting a virtual twin brother, as the bakery chain recently announced. The AI tool Alain.AI will provide a transparent and central recipe and knowledge platform, which should help store operators both personalise and standardise.

“We try to use the new tools to move the business forward and not technology for technology’s sake,” says CEO Annick Van Overstraeten. After all, 80% of the offering is the same worldwide, whereas for 20%, franchisees have the freedom to do something locally. With the AI tool, among other things, new recipes can be approved a lot faster and other countries have immediate access too.

Food as the new luxury

The project is closely linked to Le Pain Quotidien’s global franchise expansion: after a tough period, with shop closures and restructurings, the Brussels-based chain is expanding strongly again. From Mexico to Kazakhstan, Le Pain Quotidien can once again be found in 20 countries – even (or perhaps especially) where you wouldn’t immediately expect it. The latest announcements are entries in Peru and India. The Indian master franchiser is already nurturing plans to open 100 outlets by 2035. Franchise is the future according to the CEO: “An independent entrepreneur always goes that extra mile.”

“The emerging markets are definitely becoming very important,” Van Overstraeten observes. “There is a huge evolution in those countries and there surely are a lot of premium consumers who are hungry for higher-end brands and food. In each of those countries there are certainly two or three cities with very nice expansion potential.” This does make it extra important to work with local partners who know the market inside out. Le Pain Quotidien changed franchise partners in Turkey, for instance, and now the concept is growing like crazy there.

As an accessible and affordable form of luxury, food is an excellent trailblazer in emerging countries, notes Van Overstraeten. “Many people can treat themselves to a coffee with a croissant or a well-prepared lunch salad. Our concept also fits perfectly into the zeitgeist: healthy, balanced and often organic and local food. Added to this is the need for conviviality and contact, which is something we have always focused on.”

Ensuring a better inner-city blend

Admittedly, the same trends are playing out in Western Europe as well: in shopping streets and city centres, boutiques are increasingly making way for restaurants and bars. A positive evolution or not quite? “I think it’s a bit of a shame, because hospitality alone doesn’t benefit cities either. A good mix of retail and food creates a healthy dynamic. We are usually in beautiful, historic buildings in the city centre and it’s always nice if there are also nice boutiques next door with a special, creative offer. It’s important to really safeguard that dynamic – also the mix between chains and independent shops.”

Although the city centres are certainly not the only focus: locations on the outskirts of towns such as Wemmel and Waterloo are also doing very well, while in ‘travel retail’ Le Pain Quotidien is making renewed bets on kiosks in airports and stations. “It’s interesting to see that even in the Paris Gare de l’Est, consumers consciously seek us out, even though there are already many different stalls there and our offer is a bit different and pricier. People choose quality after all.”