Sausage roll chain Greggs is preparing to increase prices “very soon”, its boss said today.
Roger Whiteside said it was “inescapable” after a surge in costs.
“We are going to have to move prices very soon,” he added.
The increases are likely to be about 5p to 10p, as happened at the start of this year.
Mr Whiteside, who steps down as chief executive on Tuesday, said it would be on “selected items, across the board.”
As well as the increases at the start of this year, the chain also passed on higher VAT when the rate went back up following a temporary cut when the Covid crisis erupted.
Like most other firms, Greggs has been hit with a leap in costs for everything from energy to meat.
Russia ’s war in Ukraine, a big producer of sunflower oil, has forced it to source alternatives.
It came as Greggs announced a 27.4% jump in sales over the past 19 weeks, with takings 11% up on pre-pandemic levels.
Greggs said trade in city centre shops “continue to lag the rest of the estate”.
Mr Whiteside questioned whether sales in those shops would ever recover.
“There will be more home working than pre-pandemic and more online shopping,” he said.
Greggs has shifted to opening stores everywhere from retail parks to railway stations.
Mr Whiteside said the company had yet to see a big shift in consumer habits in the wake of the cost of living crisis.
Last year, the chain also confirmed plans to open 150 new branches in 2022.
"We have a strong pipeline of new shop opportunities and expect to open around 150 net new stores in the year ahead, in line with our stated strategy," a stock market announcement said.
But at the time, boss Roger Whiteside warned that while sales across its 2,181 stores remained strong, supply chains were still strained and inflation remained high.
In December, the business was forced to pull breakfasts and sandwiches from menus due to a shortage of ingredients.
The chief executive also announced his plans to leave the retailer after nine years at the helm.
He will be replaced by current retail and property director Roisin Currie, who has been with Greggs for 12 years and was previously an executive at Asda.
Speaking of her appointment, Currie said: "Having been a senior executive in the business for 12 years I understand our values-driven approach and the contribution that our 25,000 colleagues make each day."
"We have created a plan for strong growth and further strategic development of Greggs and I look forward to driving this in the coming years."
