What was the key to building two billion-dollar brands like Pret and Itsu?

Metcalfe emphasizes that success wasn't solely planned but involved moments of magic, creativity, and confidence. Key drivers included a desire to make a difference, build important relationships, and a deep passion for the creative process of designing food and experiences, rather than just focusing on profit.

What role did naivete play in Julian Metcalfe's business success?

Metcalfe found naivete to be very important, admitting he often had 'no idea what I was doing.' This lack of pre-conceived notions allowed him to place himself in uncharted territory, experiment, and learn from hundreds of failures, which he sees as integral to innovation.

How important is transparency in Julian Metcalfe's business philosophy?

Transparency is paramount for Metcalfe. He believes it's the only way to build trust and motivate teams. He has implemented practices like sharing company financials with employees and encouraging openness to foster a stronger, more honest work environment.

What is Julian Metcalfe's approach to hiring and team building?

He advocates for empowering current employees to sign off on new hires. This system, implemented at Pret, ensured that managers didn't just hire people they liked, but that the team culture was protected and the best candidates were selected based on collective trust.

Why does Julian Metcalfe dislike 'ambitious' managers and prefer 'slow and beautiful growth'?

Metcalfe finds highly ambitious individuals can often be short-term focused and self-serving, which can be destructive to an organization with a long-term vision. He prefers growth that is sustainable, beautiful, and rooted in strong relationships, taking a 30-year view.

What was the 'sesame incident' at Pret and its impact?

The 'sesame incident' refers to a tragic event where a young girl with severe food allergies died after consuming a baguette containing sesame seeds, information not clearly labeled. This led to the implementation of Natasha's Law, enhancing food labeling regulations in the UK.

How did Julian Metcalfe discover he had a daughter later in life?

When Julian was 45, his ex-partner contacted him to reveal that her now 19-year-old daughter, Celeste, was his biological child. He then drove to Bristol to meet her, and they have since built a strong relationship, with Celeste now working with him.

Is Julian Metcalfe happy, and what's his recipe for happiness?

Metcalfe states he is 'not unhappy' and feels privileged and lucky, having material comforts, love, and fulfilling work. He believes happiness isn't something to 'ponder' on when you have so much, but rather results from actively working towards goals and appreciating what you have.

What is Julian Metcalfe's greatest inadequacy?

He admits that creating and working the way he does comes at the cost of not spending enough time nurturing, loving, and supporting the people he loves most. He accepts this as a fact of his life.

Key Moments

Pret & Itsu Founder: How I Built TWO Billion Dollar Brands At The Same Time!: Julian Metcalfe | E173

The Diary Of A CEO

People & Blogs5 min read80 min video

Aug 29, 2022|142,378 views|3,076|283

The Diary Of A CEO podcast the diary of a CEO podcast life lessons CEO julian metcalfe start up pret a pret a manger pret a manger london

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Key Moments

TL;DR

Pret & Itsu founder shares secrets to building billion-dollar brands through transparency, empathy, and long-term vision.

Key Insights

Childhood hardships can significantly shape an individual's drive and character, potentially fueling unconventional success.

Transparency and honesty are paramount in business, fostering trust with staff and customers, and driving long-term success.

Focusing on relationships with customers and staff, and obsessing over product quality, is more crucial than chasing monetary profit.

Embracing failure is essential for growth; it's a journey of learning and resilience, not an endpoint.

Authenticity and empowering employees, even those with less formal experience, can lead to unexpected success and a strong company culture.

Building businesses requires a long-term perspective (30+ years), prioritizing sustainable growth and deep relationships over short-term gains.

THE IMPACT OF EARLY HARDSHIP

Julian Metcalfe's entrepreneurial drive is deeply rooted in his challenging childhood, marked by parental absence and his mother's suicide when he was seven. This created a profound sense of loneliness and a drive to build something meaningful. He suggests that early hardships can imbue individuals with a 'chip on their shoulder' that fuels obsession and hard work, though he also emphasizes that such experiences are not a prerequisite for success. This complex background has undoubtedly shaped his unique perspective on life and business.

TRANSPARENCY AS A FOUNDATION

Metcalfe champions radical transparency in business, believing it to be the most crucial element for sustained success. He shares his personal commitment to showing his team all company financials and never taking money out of the business, viewing this openness as a powerful motivator. He contrasts this with traditional business practices, which he likens to operating in a 'black box' rife with fear and insecurity. In a connected world, transparency is not just ethical but a strategic advantage, building trust and genuine relationships.

THE POWER OF EMPATHY AND RELATIONSHIPS

Beyond profit, Metcalfe's philosophy centers on deep connections with people – customers and staff alike. He views business not as a mere transaction but as a platform for nurturing relationships, emphasizing affection, trust, and care. This approach, he argues, is what truly builds loyalty and creates a positive company culture. The absence of affection in his own childhood reinforced his belief in its importance, leading him to cultivate it within his businesses, fostering an 'extended family' atmosphere.

EMBRACING FAILURE AND NAVIGATING NAIVETE

Metcalfe openly admits to loving failure, seeing it as an inherent part of a learning journey rather than a deterrent. His success, particularly with Pret A Manger, was not meticulously planned but emerged from 'endless moments of magic,' 'bizarre creativity,' and confidence, often by swimming against the current. This 'naivete,' or lack of a rigid plan, allowed him to explore uncharted territory and learn through repeated failures, ultimately leading to groundbreaking innovations.

CULTURE OVER TACTICS: LONG-TERM VISION

Metcalfe prioritizes building a strong culture over employing clever tactics or short-term strategies. He advocates for a 30-year view in business, contrasting it with the short-term ambitions of many managers. This long-term perspective enables sustainable growth and a focus on creating genuinely good products and relationships. He believes that by empowering employees, fostering trust, and obsessing over details like freshness and product quality, the numbers and success will naturally follow, rather than being the primary driver.

THE SEED OF ITSU AND THE LEGACY OF PRET

The genesis of Itsu stemmed from an observation that Japanese cuisine was often perceived as expensive and 'stuck up.' Metcalfe partnered with a vision to create affordable, accessible Japanese food, leading to the establishment of 76 Itsu stores. He maintained full ownership to avoid the loss of vision that he felt occurred with Pret after its sale. While he is no longer involved with Pret, he expresses hope for its continued success, acknowledging the significant impact of the 'sesame incident' and the subsequent implementation of 'Natasha's Law' on food labeling safety.

UNDERSTANDING MOTIVATION BEYOND MONEY

Metcalfe asserts that money was never his primary motivator, having witnessed the unhappiness of wealthy yet dysfunctional individuals. Instead, his drive stemmed from a desire to make a difference, be relevant, create meaningful relationships, and engage in the deeply creative process of designing food and experiences. He sought to build something significant and admirable, driven by a passion for the product and the positive impact it could have on people's lives.

THE IMPORTANCE OFDETAIL AND SERVICE

Attention to detail is a hallmark of Metcalfe's business approach, evident in utilizing real orchards for Itsu and ensuring Pret's food never had a sell-by date, with leftovers donated to the homeless. This commitment extends to exceptional customer service, where he personally responds to customer feedback. He advocates for giving generously, believing that kindness and exceeding customer expectations, even if not immediately quantifiable by traditional metrics, fosters long-term loyalty and profitability. This philosophy contrasts sharply with businesses that offer poor service despite high prices.

LEARNING FROM RELATIONSHIPS AND INADEQUACIES

Metcalfe reflects on his struggles with commitment early in life, influenced by his parents' relationship, which made him initially hesitant towards serious relationships. He credits close friends and the development of his businesses for teaching him the value of affection and trust. He candidly admits to numerous inadequacies, particularly in nurturing relationships, recognizing that his intense work focus comes at a personal cost. However, he accepts these limitations, striving to ensure his loved ones understand their importance in his life and ventures.

THE ROLE OF AUTHORITY AND INDEPENDENCE IN GROWTH

A challenging relationship with authority, stemming from negative experiences at old-fashioned schools, fostered a strong sense of independence in Metcalfe. This led him to forge his own path, distrusting hierarchical structures that failed to nurture. He views this early independence as a catalyst for his entrepreneurial journey, empowering him to create modern, transparent business cultures that value people over rigid rules or excessive bureaucracy.

Mentioned in This Episode

●Products

●Software & Apps

●Tools

●Companies

●Concepts

●People Referenced

Building Two Billion-Dollar Brands: Key Principles

Practical takeaways from this episode

Do This

Embrace failure; it's a part of the journey and happens daily.

Prioritize relationships with customers and staff over just profit.

Be obsessed with the product and its quality.

Nurture and trust your people; they can achieve incredible things.

Be transparent with your team and share financials.

Think long-term (30 years) in your business decisions.

Foster a culture of trust, care, pride, and forgiveness.

Hire talent, listen intently, and be prepared to fail repeatedly.

Create opportunities for people to be themselves and speak up.

Focus on providing affordable, nutritious food.

Seek opportunities in uncharted territory and be prepared for risks.

Build relationships based on honesty, truth, and mutual respect.

Embrace your inadequacies and accept them.

Avoid This

Don't be driven solely by money; it doesn't guarantee happiness.

Don't work for non-transparent leaders or in environments lacking honesty.

Don't fear taking risks; it's essential for innovation.

Don't underestimate the impact of early life experiences, but they don't define your entire future.

Avoid short-term thinking, especially in management roles.

Don't underestimate your own potential or the potential of others.

Don't be afraid to ask for help or admit when you don't know something.

Don't let past traumas or negative experiences dictate your present actions.

Don't expect happiness to just fall into your lap; it requires action and effort.

Common Questions

Julian Metcalfe's childhood was marked by the absence of both parents and his mother's suicide, creating loneliness. He believes these experiences, along with a distrust of authority from his schooling, contributed to a complex character that drove him to create something new and build brands like Pret and Itsu.

Topics

Entrepreneurship Leadership Human Performance Mindset & Self-Improvement Business & Entrepreneurship Company Culture Personal Development Brand-building Work-life Balance

Mentioned in this video

Software & Apps

Crafted London

A jewelry brand that sponsors the podcast, known for producing meaningful, high-quality, and reliable pieces at an accessible price point.

Vodafone Business Vhub

A platform providing resources and advice for business growth and education, partnering with the podcast host to offer learning opportunities.

People

Michael Jordan

Mentioned in the context of trainers discussing how early traumatic events can contribute to both the 'light side' (talent) and 'dark side' (insecurities) of individuals.

Eddie Hearn

Mentioned as an example of someone driven by ambition, potentially stemming from living in his father's shadow and dealing with insecurity.

Kobe Bryant

Mentioned similarly to Michael Jordan, in the context of how early life events, potentially traumatic, can shape individuals' talents and complexities.

Legislation & Policy

Natasha's Law

Legislation implemented in the UK requiring more detailed food labeling, named after Natasha Ednan-Laperouse, a young girl who died from an allergic reaction to a baguette.

Companies

Huel

A nutritionally complete vegan meal replacement drink, sponsored by the podcast. It is described as low sugar, gluten-free, high protein, and available in banana flavor.

Pret A Manger

A sandwich and coffee chain co-founded by Julian Metcalfe, which he later sold. It's characterized by its focus on fresh food and a positive company culture.

Itsu

A healthy fast-food chain founded by Julian Metcalfe, focusing on Asian-inspired dishes, with a commitment to affordable, nutritious food and continuous reinvention.

Tools & Products

Hoffman Process

A personal development program mentioned by Julian Metcalfe as a tool he used for self-discovery and reflection.

Concepts

The Metoo Movement

Cited as an example of how a lack of transparency can be overcome, leading to widespread openness and change. It demonstrated the power of collective voice.

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