Greggs, the UK bakery chain, will raise prices for its breakfast meal deals and biscuits starting Thursday, marking the third price increase this year. CEO Roisin Currie attributed this decision to rising operational costs, including a £20 million increase in employer National Insurance contributions following last year’s Budget announcement.
The company announced that its two-part and three-part breakfast deals will see price increases of 20 pence, bringing the prices to £3.15 and £4.15, respectively. Other price adjustments will be minimal, with biscuits rising by approximately 5 pence. Notably, the price of the popular sausage roll, which was increased to £1.30 earlier this year, will remain unchanged in this round of adjustments.
This pricing trend is reflective of broader pricing movements seen across the UK high street, with similar increases reported by other retailers. For instance, Tesco raised its meal deal prices by 25 pence in August, and Costa Coffee has also heightened prices for hot beverages this year.
Despite the rising costs, Greggs continues to expand its operations. Currie indicated plans to open a net of 120 new shops in 2025, focusing on locations in retail parks and roadside services, particularly in southern England. The chain currently operates over 3,000 stores in the UK.
Looking ahead, Currie expressed cautious optimism that price pressures may decrease next year, although upcoming government budgets could influence this outlook. She highlighted unexpected costs from the previous budget as disruptive to business planning. Additionally, potential increases to minimum wage may further affect cost structures. Sales figures indicate a 6.7% increase for the year-to-date, rebounding after a slowdown attributed to the summer heatwave.
Source: https://www.bbc.com/news/articles/c2lx2k2y70qo?at_medium=RSS&at_campaign=rss