Food price inflation is pushing British consumers to reconsider their spending on takeaway treats and on-the-go lunches, with chains like Greggs and Pret a Manger feeling the pinch. A Greggs sausage roll, which cost 66p during the 2012 'pastygate' controversy, now sells for £1.30. The company's share price has halved in the past year amid slowing sales growth, and its boss has denied that Britain has reached 'peak Greggs'.
Pret a Manger has also faced scrutiny over pricing, having launched a £12.95 premium salad and a £7.15 posh cheese and pickle baguette in recent years. The chain recently introduced meal deals to compete with supermarkets, while its owner wrote down the value of the chain by a third due to 'intense strains' on the hospitality industry. Pret's CEO, Pano Christou, defended prices, stating that the £8.95 lobster roll is the cheapest on the market.
Official figures show UK inflation at 3.8%, the highest in the G7, with food inflation expected to peak above 5% this autumn. Prices for fast food and takeaways have risen 33% since 2020. Business leaders attribute some of these increases to the £25bn rise in employer national insurance contributions, warning that further tax hikes could compound the problem.
Richard Lim, CEO of Retail Economics, noted that consumers are becoming more cautious: 'There's a limit to how much people are prepared to pay for certain products. It's snapped for some consumers with some products.' He added that some shoppers blame government decisions for inflationary pressures. The poorest households are disproportionately affected by rising food costs.
