Greggs issue price hike warning

The fast food chain said it had already increased some prices at the start of the year, and that further changes are expected because it is expecting costs to rise by between 6% and 7% this year due to higher staffing and ingredient overheads

In a statement, the company said it will try to protect its reputation for being "outstanding value for money" but added: “Some price increases were made at the start of this year, and further changes are expected to be necessary.

"As ever, we will work to mitigate the impact of these cost increases on customers, protecting Greggs' reputation for exceptional value in the freshly-prepared food-to-go market.

"Given this dynamic, we do not currently expect material profit progression in the year ahead."

The business swung back to a profit last year after taking a hit in 2020 when many of its shops were closed for much of the year due to the pandemic.

The chain notched up a £145.6m profit before tax, from a loss of £13.7m the year before.

Sales rose 5.3% compared with 2019, the year before the pandemic, reaching £1.2 billion.

The firm also plans to extend late opening times to 500 shops around the country, and will start offering delivery from 1,300 of its stores.

Delivery is currently available from 1,000 sites.