Tracy J. Chappelle 
Greggs has warned that the price of its products will likely rise for the second time this year as it faces skyrocketing costs.
The fast-food chain said it had already raised some prices earlier this year and more changes are expected.
The cost of doing business is expected to increase by 6-7% for the company this year due to rising personnel and ingredient costs.
He said he would try to protect his reputation for being “outstanding value for money”.
“As always, we will work to mitigate the impact of this on customers, protecting Greggs’ reputation for exceptional value in the freshly prepared takeaway market.
“Given this momentum, we do not currently expect significant earnings growth in the year ahead.”
However, boss Roger Whiteside said the company will need to assess whether it is able to change prices before doing so.
This is to ensure that customers will still choose to spend money at Greggs even if prices go up.
“We have no plans to increase prices at this time, but obviously this will have to be kept under review given the way markets are developing around the world, particularly food prices,” he said. he declares.
“If the market allows price increases to pass through to customers then we’ll have to try to do that, if not we can’t,” he added.
“You try to position the price to make sure you maximize sales.”
The company returned to profit last year after being hit in 2020 when many of its stores were closed for much of the year due to the pandemic.
The chain made a profit of £145.6million before tax, compared to a loss of £13.7million the previous year.
Sales rose 5.3% from 2019, the year before the pandemic, to £1.2bn.
Greggs plans to expand late hours to 500 stores nationwide and will begin offering delivery from 1,300 of its stores. Delivery is currently available from 1,000 locations.
Mr Whiteside said the business needed to establish a reputation for being open late before it could realize the full benefits of keeping its doors open until 8pm, rather than the usual 6pm.
“Despite challenging business conditions, Greggs was able to punch above its weight through a competitive pricing recipe, smart localization strategy and their JustEat delivery partnership.
“In 2021, Greggs drove revenue growth through store expansion, opening approximately 131 new stores.
“More stores may have meant more sausage roll sales, but a lack of comparable growth is now a concern.
“With the wow factor of its vegan offerings now a distant memory, Greggs needs to offer more innovative and expansive food and drink choices, our experts say.”
Staff can also expect a bonus as Greggs shares 10% of its profits with employees.
For staff who have been with the company for more than six years and work 20 hours a week, the bonus will be around £800, Mr Whiteside said.
He added that the company was not directly exposed to the war in Ukraine, but would be affected by the rise in world prices expected from the Russian invasion.
Russia and Ukraine supply about a third of world wheat exports, and Ukraine is also a major supplier of sunflower oil.
