Cheap meals 'compelling' for customers says Greggs as sales surge by a fifth

Bakery chain Greggs has revealed its sales surged by nearly a fifth over the year to date as its cheap meals remain “compelling” to cash-strapped consumers.

Sales grew by 17% over the start of the year compared with 2022, partly because the first few months of the previous year were impacted by the Omicron variant, Greggs said.

Hot food such as chicken goujons and wedges are proving popular, alongside as strong demand for pizza as the retailer moves further into the evening market.

The Newcastle-based bakery has just won a court battle with Westminster Council to allow its Leicester Square branch to stay open until 2am.

Greggs’ chief executive, Roisin Currie, said consumers were “loving the versatility” of hot and cold options.

She said: "It’s all about offering that choice, so people can come in more frequently.

"They can come in time and time again and try lots of different things, as well as they favourites that they love.”

Nevertheless, sales growth is likely to “normalise” throughout the rest of the year, the company said, as inflation starts to ease.

It is still expecting cost inflation to reach around 9% to 10% this year, driven by staff pay pressures and higher energy costs.

Greggs has steamed ahead with growing its store estate, opening 63 new shops over the period and closing 25 franchises.

It had more than 2,360 shops by mid-May, and previously hinted it wants to reach more than 3,000 across the UK over time.

The group is currently choosing a location to trial a 24-hour drive thru.

Greggs cautioned that the macroeconomic backdrop remains “challenging” with ongoing cost inflation and household incomes under pressure.

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