Bakery chain Greggs has announced plans to open dozens of new stores across the UK in 2024, following a significant increase in profits. The company reported underlying pre-tax profits of £74.1m in the first six months of the year, marking a 16% rise from the same period last year. Total sales also saw a significant increase of nearly 14%, reaching £960.6m during the same period.
However, Greggs also disclosed that it has recently raised prices on some menu items in response to mounting pressure on its staff wage bill. This has resulted in a 5p to 10p increase on some bakes and sandwich ranges, while meal deals have remained unchanged. Chief executive Roisin Currie stated that there are no further price increases planned for the rest of the year. These price adjustments were made after the company raised salaries for its 32,000 employees ahead of the implementation of the new National Living Wage of £11.44 per hour in April.
Greggs’s rise in profits can be attributed to its expansion of product offerings and increasing number of branches across the country. The company credited its iced drinks range and pizza deals for contributing to its growth, along with improved evening sales. In the first half of the year, Greggs opened 99 new shops, including 25 franchised outlets. However, it also closed 18 shops and relocated 25.
According to Ms Currie, the company’s success is built on the exceptional value it provides to customers seeking on-the-go food and drink, as well as the fast and friendly service delivered by its employees. Currently, Greggs has over 2,500 branches nationwide, but the company is investing in its supply chain to eventually support 3,500 outlets.
The company’s half-year report stated its confidence in opening a net total of 140 to 160 new shops this year. Furthermore, Greggs is diversifying the locations of its branches, moving away from solely focusing on town and city locations. The company has seen particular success in expanding its presence in roadside locations, which now make up a quarter of its estate.
