Greggs has warned the future price rises of up to 9% could hit sausage roll and steak bake lovers. The cost of its products may be forced up as the retailer is forced to spend more on key ingredients, packaging and energy bills, it said.
Plans to extend opening hours and offer more delivery across its stores have already been confirmed. However, its manufacturing and running costs are set to rise, which could be passed onto customers as a result.
The Mirror reports that the company has been working to keep product prices down while ingredients, packaging and energy bills have all risen around them. Greggs also revealed that sales jumped 27.1% in the 26 weeks to July 2, to total £694.5m.
This is compared with £546.2m a year earlier, but its half-year profits remained largely flat year-on-year at £55.8m compared with £55.5m last year. Greggs blamed this on business rates becoming introduced once again after the coronavirus pandemic - with an increase in VAT and higher levels of cost inflation, reports ChronicleLive.
The chain retailer, which has over 2,200 shops across the United Kingdom, has also said that they plan to extend opening hours across their estate. They revealed that 300 shops now trade until 8pm as a minimum, confirming that more stores will be open later by the end of 2022.
On top of this, Greggs is planning on opening 150 brand-new outlets by the end of the year too - with the company considering increasing their output to 3,000 stores total in the coming years. The bakery giant will also offer more delivery services in order to gain more evening sales.
At the moment, delivery through Just Eat is available across from 1,180 shops, up from 1,000 at the start of the year. Other plans from Greggs include allowing customers to customise their sandwich fillings as part of a new trial.
Diners can currently only customise pizza toppings when ordering through its click and collect service.
Roisin Currie, the chief executive who took over from Roger Whiteside earlier this year, said: “In a market where consumer incomes are under pressure Greggs offers exceptional value for customers looking for food and drink on the go. We are well positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion.
“We remain confident in Greggs’ ability to deliver continued success.”
