Greggs has increased the price of its sausage rolls by 5p to £1.25, and the vegan equivalent by the same amount, despite the bakery chain previously stating it had no plans for further price rises. The increase also applies to four-packs, which now cost £3.75, up 10p.
Roisin Currie, chief executive of the Newcastle-based group, said the price rises on a small number of products were driven by continued cost inflation of 4% to 5%, primarily from wage increases implemented in January. However, she stressed that breakfast and lunch meal deals have not been affected and that there are currently no further price increases planned.
Greggs reported a 16% rise in underlying first-half profits to £74 million, beating expectations by 5%, and sales up nearly 14% to £961 million. Shares rose almost 5% on Tuesday. The company attributed growth to new store openings, new products such as pizza box deals and iced drinks, and increased digital engagement during the Euros and Olympics.
The chain opened 51 net new stores in the first half and plans up to 160 more in the next six months, focusing on railway stations, airports and retail parks. Currie noted that evening trade is growing faster than average store sales, supported by delivery services which now account for nearly 7% of sales.
