High street bakery giant Greggs has announced a modest but symbolic price increase for its flagship product, the sausage roll, alongside a rise in the cost of its lattes, as it navigates a challenging market.
Price Rises and Financial Forecast
The cost of a Greggs sausage roll has risen by 5p to £1.35, while the price of a latte has increased by 10p to £2.25. The company, which announced the changes on Friday 9 January 2026, directly attributed the moves to escalating business costs and difficult trading conditions.
This news was accompanied by a sobering financial update. Greggs' shares fell by approximately 8 per cent following the announcement, as the firm forecast that its profit for the current year would remain flat. Chief executive Roisin Currie pointed to subdued consumer confidence as a key factor negatively impacting the broader food-to-go sector.
Resilient Sales Amid Market Challenges
Despite the tough backdrop, Greggs reported that it had managed to outperform its competitors during the crucial Christmas trading period. The chain achieved total sales growth of over 7 per cent over the festive season.
However, the full-year picture shows a slowdown. Like-for-like sales growth across the year eased to 2.4 per cent, indicating the pressure on consumer spending. Ms. Currie offered a nuanced insight into changing demand, noting that the growing use of appetite-suppressing medication is influencing customer preferences towards healthier and smaller portion options.
Strategic Adaptation for the Future
In response to these shifting trends, Greggs is pivoting its strategy. The core focus remains on providing value-for-money to its customers, a principle it considers vital in the current economic climate.
Simultaneously, the bakery chain is expanding its menu to cater to evolving tastes. It is placing a greater emphasis on healthier choices, such as egg pots and overnight oats, to meet the demand for alternative, nutritious options on the go.
This dual approach of maintaining value while diversifying its offering is central to Greggs' plan to weather the ongoing cost of living pressures and adapt to the new realities of consumer behaviour in the UK retail market.
