Greggs boosted its sales during the summer heatwaves thanks to iced matcha lattes, a larger salad range and chicken rolls. Britain's biggest fast-food business reported total sales of £1.1bn for the first six months of the year, a 7.2% rise compared with the same period a year earlier.
New stores drive growth
The sales increase was largely due to the opening of new outlets. Greggs added 34 sites on a net basis, bringing its total UK outlets to 2,773 by the end of June. The Newcastle-headquartered chain said its new shops had been performing well, which it attributed to a “disciplined focus on high-quality locations”.
Sales at existing stores rose 2.1% between January and June, helped by price increases on key items at the start of 2026.
No further price rises expected
Chief executive Roisin Currie said Greggs did not plan to raise prices further this year, as its cost inflation forecast had fallen to 2% from 3%. The company had hedged 90% of its energy costs for this year and half for next year, protecting it from recent oil price rises. Key commodity costs, such as cocoa and coffee, had also eased after high inflation.
Profit jumps 20%
Greggs' pre-tax profit rose nearly 20% from a year earlier to £76m for the first half. The company attributed this to cost control and growth in its “bake at home” frozen range, which launched in Tesco earlier this year and expanded in Iceland supermarkets.
New products attract customers
The results mark a turnaround from last summer, when sales and profits were hit as customers avoided pastries like steak bakes and vegan sausage rolls during hot weather. Analysts had questioned whether the UK had reached “peak Greggs”, but Currie insisted the company had bounced back from previous downturns.
New products helped attract health-conscious customers during heatwaves. A chicken roll launched in April was hailed as a “standout success”, while a relaunched salad range featuring chicken caesar and prawn layered pasta salads offered healthier lunch options.
Currie said Greggs adapted to more frequent hot spells by introducing iced drinks last year and a “more compelling” salad range this year. “We have become more resilient as we have seen hot weather become more of a normality at certain points in the UK,” she said.
New drinks such as lemonades, refreshers and matcha – the antioxidant-rich green tea popular with Gen Z consumers – have also helped attract younger customers.
Future expansion
Currie said the latest results showed Greggs “continued to outperform the market” and there was room for more outlets, particularly in travel hubs, industrial sites, retail parks and by motorways. “We remain focused on opening shops in more catchments and introducing convenient ways for customers to pick up Greggs favourites, while broadening and innovating our menu in line with changing tastes and trends,” she said.
Julie Palmer, managing partner at advisory group BTG, said Greggs was undeterred from store expansion despite the economic outlook and growing use of weight-loss drugs. “As any price rises can quickly translate into demand crumbling away, Greggs will have to continue walking the tightrope of pricing and controlling costs to retain and grow market share as the food-to-go provider of choice,” she said.
