Greggs is raising prices on some menu items this week while its chief executive calls on the Government to avoid any "surprises" in the upcoming autumn Budget. Roisin Currie confirmed the bakery chain will increase costs across several popular deals and products.
The company's two-part breakfast deal, which includes a roll and drink, will rise from £2.95 to £3.15. The three-part breakfast option, featuring an additional side like yoghurt or hash browns, increases from £3.95 to £4.15.
Some baked goods, including the empire biscuit, will go up by 5p. Currie stressed the deals "still offer exceptional value" and emphasised that numerous other products "will be protected and will not move".
Budget concerns over business planning
The chief executive said Greggs hopes for a "balanced Budget" when Chancellor Rachel Reeves announces tax and spending plans in November. She highlighted the challenges of unexpected policy changes affecting business operations.
"I guess what's not helpful is when it's something that comes out that surprises us and that's what happened with the national insurance last year - we weren't expecting that and it came in very quickly," Currie said. "It's quite hard to plan and manage a business when you have a £20 million hit that you hadn't predicted or weren't aware was coming."
The retailer has faced pressure from higher employer national insurance rates and rising minimum wage costs. Currie called for measures that will "put money in the pocket of the consumer" while providing businesses with "reasonable notice" of any changes.
Strong sales performance continues
Greggs reported a 6.1% sales increase in the third quarter compared to the same period last year across its 2,675 UK shops. However, like-for-like sales growth in company-managed stores slowed to 1.5% year-on-year, down from 2.6% in the first half.
Unusually hot weather dampened July sales as customers enjoyed sunny conditions elsewhere, though trading recovered strongly in August and September. The company's share price jumped approximately 7% following the quarterly update.
Expansion and menu innovation
The bakery chain continues expanding its menu with high-protein options including egg pots and protein shakes, alongside seasonal items like pumpkin spice lattes and toffee fudge muffins. Greggs has opened 57 net new locations this year, including partnerships with Tesco and Sainsbury's.
The company now expects 120 net new openings for the full year, slightly below its previous target. Management cited "progress despite challenging market conditions" reflecting weaker consumer confidence and rising inflation.
Currie noted consumers are "saving rather than spending and, where they are spending, they are spending wisely - so it's a very savvy consumer out there". She added: "With us being a great value proposition, then hopefully that means some of those customers will be swapping into Greggs to take advantage of that great value."
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
