Greggs, the nation's beloved bakery chain, has confirmed it will be increasing prices on its popular breakfast deals and other menu items in response to what it describes as "softer than expected" summer sales.
The Newcastle-based food-to-go specialist revealed that despite maintaining its market share, overall sales growth had slowed during the crucial summer period. This disappointing performance has forced the company to implement strategic price adjustments to protect its profit margins.
What's Getting More Expensive?
While the company hasn't specified exact new prices, customers can expect to pay more for:
- Signature breakfast meal deals
- Selected bakery items
- Other popular products across their range
The price changes come as Greggs faces the same inflationary pressures affecting the entire food sector, with rising costs for ingredients, energy, and wages continuing to squeeze margins.
A Challenging Summer for High Street Favourite
Greggs reported that like-for-like sales in company-managed shops grew by just 2.3% in the 13 weeks to 27 September, a significant slowdown from previous quarters. The company attributed this to "more challenging market conditions" and noted that customer traffic had been particularly affected in August.
"We've seen some softening in the market," a company representative stated, "and while we've worked hard to absorb costs, some price adjustments are now necessary to maintain the quality and value our customers expect."
What This Means for Greggs Fans
Despite the price increases, Greggs remains committed to its value proposition. The company emphasised that it continues to offer "outstanding value" compared to competitors and will maintain its strategic focus on keeping prices competitive.
The bakery chain, famous for its sausage rolls, steak bakes, and affordable coffee, has become a barometer for the UK's cost of living situation. Its latest move signals that even the most resilient high street operators are feeling the pinch from persistent inflation.
Greggs shares fell slightly following the announcement as investors digested the news of slowing sales growth, though the company maintained its full-year profit expectations.
