Greggs aims to roll out 150 new stores a year and trial 24-hour drive-thru

The nation's favourite bakery chain, Greggs, has revealed major expansion plans as it extends opening hours and is poised to trial a new 24-hour drive-thru.

Greggs has reported record high sales as consumers flocked to the bakery chain for low-cost meals amid the cost-of-living squeeze.

Among growth strategy plans, Greggs revealed it is hoping to open 150 new shops every year.

Roisin Currie, Greggs’ chief executive, said: “We believe we have got enough momentum to continue with that target for the foreseeable future."

The group has been extending its opening hours in order to sell more hot evening meals, with around 500 of its stores now open until at least 8pm.

Greggs plans for a further 300 to stay open until 9pm this year.

The chain, which already has nearly 2,330 shops, said there is a “clear opportunity” to have significantly more than 3,000 shops across the UK over time.

Greggs already opened a record 186 new shops this year, and closed 39, with new chains popping up in transport hubs like train stations and airports, retail parks and drive-thrus.

This year it is set to trial a drive-thru that will be open 24 hours, although Ms Currie said the location has not yet been decided.

It comes as Greggs revealed its total sales hit a record high of £1.5 billion last year, up by nearly a quarter on the previous year.

Households grappling with rising living costs has resulted in loyal customers who return to Greggs for value meals, although the number of customers has remained below pre-pandemic levels, it said.

Ms Currie said: “If you are a person who is out and about – whether you are going to work, or going to college or going to meet friends and you need to eat, then you are coming into Greggs and having a breakfast for £2.60, a lunch for £3.60, or an evening meal offer.

“It is just that easy way to fuel yourself when you’re on the go and you need to eat.”

Ms Currie said extending opening hours until 8pm has led to evening meals becoming Greggs' “winning products”, such as pizza slices, chicken goujons and wedges, as well as pizza boxes which people can order from home.

Its vegan range continues to sell well and about 5% of its total sales came from delivery services, with strong demand for sharing boxes, Greggs said.

Nevertheless, the group’s profit lifted by just 1.9% over the year, after it was hit by steep cost inflation and the withdrawal of the government’s pandemic support.

Its pre-tax profit hit £148.3 million in 2022, up from £145.6 million the previous year.

Cost inflation is expected to remain a challenge this year, reaching levels of 9% to 10%, driven by staff pay pressures and energy costs.

But Greggs said it has managed to pass on some of the cost inflation to consumers through price rises.

The price of its popular sausage roll is now £1.20, having cost £1 at the start of 2022 and being subject to several price rises throughout the year.

Ms Currie assured there are no current plans to increase prices further, but stressed it will have to keep prices under review in the “uncertain market”.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To know...