Greggs, the bakery chain, has seen a huge surge in sales this year, with a 19% increase compared to 2022. This was mainly attributed to its cheap meals, which have become a hit with the cash-strapped consumer. Hot food options, such as chicken goujons and wedges, have also been popular, while pizza sales have been booming as the chain expands into the evening market.
Vegan options have been rolled out steadily in recent years, with Greggs introducing a vegan sausage roll and vegan chicken-free bake. A new Mexican chicken flatbread will also be released this Thursday. Chief executive Roisin Currie said customers are loving the variety of hot and cold items offered. Sales growth, however, is expected to normalize throughout the year, as inflation starts to ease. Prices may remain the same, as Greggs is still expecting cost inflation to reach 9-10%.
Greggs has been steadily expanding, opening 63 stores and closing 25 franchises, with a total of 2,360 branches by mid-May. The chain is targeting busy commuter areas, with new locations in Canary Wharf station, Cardiff and Glasgow airports. Additionally, it has launched two new Tasty cafes in Primark stores, aiming to attract customers on the go. Finally, the company is currently in the process of deciding where to trial its 24-hour drive thru.
Despite the challenging economic climate, with households’ incomes under pressure, Greggs is confident its value proposition remains attractive. The UK’s average price of the popular sausage roll is currently £1.20, having cost £1 at the start of 2022.
