Greggs has confirmed price increases on several popular menu items, attributing the rises to higher staff wage bills. Chief executive Roisin Currie said some bakes and sandwiches have gone up by 5p to 10p in recent weeks, though meal deal prices remain unchanged and no further increases are planned for the rest of 2024.
The price adjustments come as the bakery chain reported a 16.3% rise in underlying pre-tax profits to £74.1 million for the six months to June 29, with like-for-like company-managed shop sales up 7.4%. Greggs said profit growth was supported by a “better recovery” of cost inflation compared with a year earlier.
Ms Currie explained that the group acted to offset higher pay for its 32,000-strong workforce, having raised salaries ahead of the National Living Wage increase earlier this year. “The biggest inflation cost right now is the increase in the National Living Wage and making sure our employees get the wage increases that are appropriate,” she said.
Total sales rose 13.8% to £960.6 million in the first half, driven by new menu items such as iced drinks and pizza deals, including a four-slice sharing box. Greggs remains committed to its long-term target of “significantly” more than 3,000 UK shops, having opened 99 new outlets and closed 18 to reach 2,524. It plans up to 160 net new shops by year-end.
Warehouse redevelopment in Birmingham and Amesbury, Wiltshire, is underway to support an additional 300 shops, with completion expected in the latter half of the year. Cost inflation for the first half was 4%, expected to be 4% to 5% for the full year. Ms Currie said the board’s expectations for the full-year outcome remain unchanged.
