The UK food-to-go and coffee chain has achieved robust third quarter sales and outlet growth despite ‘considerable uncertainty’ in the UK economy, including soaring inflation and energy costs
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A Greggs drive-thru in Slough, UK | Photo credit: Greggs
Greggs has credited its value-for-money offer as ‘ever-more important to consumers’ amid soaring inflation and rising energy costs in the UK.
Reporting its third quarter results to 1 October 2022, Greggs said total sales rose 14.6% compared to the same period a year ago.
The food-to-go and coffee chain opened 106 stores and permanently closed 16 over the period (+90 net new stores). These included two new drive-thru sites Amesbury and Durham and railway locations at Tottenham Hale and London’s Liverpool Street Station.
The chain now operates a total of 2,271 outlets in the UK, of which 1,860 are company operated and 411 are franchised. Greggs expects to open a further 150 stores during 2022, around 40% of which will be franchised locations.
Greggs said its vegan range was also proving popular with consumers, with the chain boosting its plant-based options to include its ‘vegan bean & cheeze toastie’ and ‘vegan southern fried chicken-free baguette’.
Pizza is also an ‘important category’ for Greggs, with the company commissioning a new manufacturing line its Enfield site to support growing demand for the product.
Looking ahead, Greggs said it was well placed to withstand current inflationary pressures, with its value-focused offer remaining a key pillar of its appeal with consumers.
The company anticipates average energy costs – a growing concern for UK hospitality businesses – to remain below the current UK price cap and expects its full-year performance to be in line with previous expectations.
Nevertheless, Greggs said there ‘remains considerable uncertainty in the economy as a whole’.