Greggs warns of further price rises due to higher staffing and ingredient costs
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Greggs had already increased some prices at the start of the year and has stated on Tuesday, March 8, that further changes are expected to be made.
The bakery chain has said that the cost of doing business is set to rise between 6% and 7% for the company this year due to higher staffing and ingredient costs.
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A spokesperson said: “This has necessitated some price increases, which 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 this 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.”
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Hide AdGreggs chief executive officer, Roger Whiteside, has stated that the company will need to assess whether it is able to change prices again before going ahead.
He commented: “We’ve got no plans to raise prices currently, but obviously that’s going to have to remain under review given the way the markets are moving around the world on commodity food prices in particular.
“If the market allows price increases to move onto customers, then we will have to attempt to do that, if it doesn’t then we won’t be able to,” he added.
“You’re trying to position price to make sure you maximise sales.”
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Hide AdThe 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 made a £145.6 million profit before tax, from a loss of £13.7 million the year before – with the recovery of sales much better than originally expected following the pandemic.
Greggs also plans to extend late opening times to 500 shops around the country, and will start offering delivery from 1,300 of its stores.