Greggs set to raise prices again in response to cost pressures, says CEO

Getty ImagesGreggs will increase its costs for the third time this 12 months from tomorrowHigh avenue baker Greggs is about to boost costs on its breakfast meal offers and biscuits in response to rising price pressures, the corporate’s chief government has mentioned. Roisin Currie mentioned the value will increase would kick in from Thursday.She mentioned the motion was being taken in response to elevated staffing prices, together with the affect of an surprising £20m improve within the quantity it pays in employer Nationwide Insurance coverage because of final 12 months’s Price range.Will probably be the third time this 12 months that the sausage roll maker has raised costs, mirroring a wider development on the UK excessive avenue. Each the two-part and three-part breakfast deal will improve by 20p every to £3.15 and £4.15p, respectively.The Greggs’ boss mentioned different worth rises throughout different strains, like its biscuits would solely be about 5p.Greggs’ well-known sausage roll can be unaffected on this spherical of worth hikes, having already elevated to £1.30 earlier this 12 months.In August, Tesco elevated its meal deal worth by 25p, whereas espresso chain Costa has additionally elevated scorching drink costs this 12 months.Regardless of price pressures, the bakery chain will proceed to open shops, and Ms Currie mentioned there have been alternatives to construct extra Greggs retailers in retail parks, roadside providers in addition to “compelling alternatives” to push additional into southern England.”Some had been querying ‘have we reached peak Greggs?’ and we’ve got gone out…to display that this isn’t the case,” the meals retail boss mentioned.Greggs has greater than 3,000 retailers throughout the UK. It plans to open a web 120 websites in 2025.Bracing for the BudgetThe bakery boss mentioned she anticipated worth pressures on the enterprise to ease subsequent 12 months, however that the upcoming Price range might change that assumption.”What’s not useful is when one thing comes out that surprises us – that is what occurred with the Nationwide Insurance coverage final 12 months…it is fairly arduous to plan and handle a enterprise when you’ve got a £20m hit that you simply hadn’t predicted,” Ms Currie mentioned.Final 12 months’s Price range included a rise in employer Nationwide Insurance coverage aimed toward elevating £25bn for the federal government, which confronted criticism from companies. Ms Currie pointed to potential will increase to the minimal wage as one more reason why price pressures and worth rises could proceed.Gross sales in July had been affected by the summer time heatwave, the pastry and pizza slice vendor instructed traders in an replace.Consumers returned for his or her steak bake and sausage roll fixes in August and September although, with total gross sales for the year-to-date up 6.7% in comparison with final 12 months.