Newcastle bakery chain Greggs says the cost-of-living squeeze is drawing customers to its value meals, sending sales a whopping 27% higher.
The steak bake maker has posted half year figures for the first half of the year in which sales rose to £694.5m, compared with £546.2m a year earlier. But half-year profits remained largely flat year-on-year at £55.8m, because of the re-introduction of business rates, an increase in VAT and higher levels of cost inflation.
With soaring inflation putting a strain on people's incomes, consumers are more likely to turn to lower-cost food and drink while on the go, Greggs said. The chain, which has more than 2,200 shops in the UK, said it plans to extend its opening hours, shake up its menu options and offer more delivery services in order to gain more evening sales.
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Greggs has opened 70 new shops during the period and expects to have 150 net new shop openings over the course of the year. Its 400th franchised shop opened in Selby in partnership with its newest franchise partner, Rontec, one of the leading players in the UK forecourt industry.
Other notable shop openings included three drive-thru sites and the world's largest in-store café in Primark Birmingham. Two weeks ago it also opened shops in London’s Leicester Square and Liverpool Street Station.
It said moves to open many of its shops into the evening was “going well”, while deliveries were also increasing. It added that it was increasing its healthy food choices with the launch of two salad meal boxes and was also adding two new pizza flavours, Mexican chicken and pepperoni hot shot.
Customers can also now customise their pizza toppings when ordering through its digital channels and it intends to trial the customisation of sandwich fillings in the second half of 2022.
Greggs chief executive Roisin Currie said: “Greggs delivered an encouraging performance in the first half of the year with sales ahead of 2019 levels. These results demonstrate the continued strength of the Greggs brand and demand for our great tasting, quality and value for money offering.
“During the period we continued to make good progress with our strategic priorities, including expanding our shop estate and making Greggs more accessible to customers through extended trading hours and digital channels.
“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.”
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