Iced beverages are now available at nearly a third of Greggs’ 2,559 outlets and were a key contributor to 10.6% group sales growth
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Greggs has ambitions to reach ‘significantly more than 3,000’ UK stores in the longer term | Photo credit: Greggs
UK-based Greggs has credited strong consumer demand for its iced beverage range and broader value-focused proposition for boosting third quarter sales.
The food-to-go and coffee chain achieved 10.6% year-on-year group sales growth in the three months ended 28 September 2024, with year-to-date sales tracking 13% ahead of last year.
Despite sales growth slowing quarter-on-quarter, Greggs said menu expansion and its value proposition continue to drive footfall at its 2,559 outlets. Its iced beverage range – first launched in June 2023 and upgraded in May 2024 – was expanded to a further 300 stores during the quarter and is now available at 800 sites.
Greggs expects its autumn menu, which features hot and iced pumpkin spice and salted caramel lattes, to build upon strong September sales and support fourth quarter revenue growth.
Greggs’ value-focused proposition also continues to resonate with price-conscious UK consumers, with World Coffee Portal’s Project Café UK 2024 report showing the operator is considered the best value-for-money among the UK’s largest branded coffee chains.
Newcastle upon Tyne-based Greggs opened 35 net new stores in the third quarter, bringing the total number of net new outlets this year to 81. The chain also closed more underperforming smaller outlets in favour of larger sites more suited for higher volumes of click & collect and delivery orders, as well as hot food preparation.
In July 2024, Greggs unveiled plans to further diversify its store portfolio beyond city centres in the second half of 2024 by opening more locations at retail parks, transport hubs and supermarkets. The food-to-go and coffee chain opened new drive-thru outlets at Bristol’s Abbeywood and Harlequin business parks during the third quarter.
Greggs is seeking to open 140 new stores in 2024 and has ambitions to reach ‘significantly more than 3,000’ UK stores in the longer term.