The boss of Britain’s biggest bakery chain, Greggs, has said it has no plans for further price rises this year, as it reported a slowdown in sales in recent months.
Its chief executive, Roisin Currie, said the company planned to hold its prices, as cost inflation is now expected to come in at the bottom end of the expected 4% to 5% range.
She said the outlook for 2025 was better than for this year, adding that sales in July and August were affected by the weather and the far-right riots across numerous cities and towns in England, and in Belfast in Northern Ireland.
In July, Greggs said it had increased prices for some of its menu items after coming under pressure from a soaring wage bill, including an extra 5p on sausage rolls and their vegan equivalent, despite having said earlier in the year that it had no plans for further rises.
Greggs said on Tuesday that like-for-like sales at outlets open at least a year rose by 5% in the 13 weeks to 28 September, and by 6.5% in the year to date. Its shares fell by 5.3% on the news, making it the biggest faller on the FTSE 250.
The grocery chain has launched its autumn menu, featuring an all-day breakfast baguette and Mexican bean and spicy cheese flatbread, along with a pumpkin spice doughnut and pumpkin spice latte. It is selling its new over-ice drinks range in 800 shops, and expects to extend this to 1,000 outlets by the end of the year.
So far this year, Greggs has opened 86 new shops on a net basis, including 43 relocations, giving it a total of 2,559 outlets. More than 2,000 are managed by the company, while 543 are run by franchisees. It plans to open between 140 and 160 shops this year.
Currie said the company was relaxed about the Labour government’s plans to give workers more rights and greater certainty over their hours and pay. Greggs employs about 32,000 people.
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“There is nothing in the employment rights bills that I would say we are worried about,” she told Reuters. “I think it’s all about trying to make sure that people are well looked after in the workplace.”
Greggs is building a new frozen product manufacturing and logistics site in Derby, and expects to sign the lease towards the end of this year. Once the lease is signed it will fit out the building and plans to open it in 2026.