Greggs has increased the price of its iconic sausage rolls and other treats in a ‘sneaky’ change to cover higher wages for staff.
Chief executive, Roisin Currie, today revealed that Greggs has increased the prices of some items on its menu by 5p and 10p in recent weeks.
It comes as Greggs reported a 16.3% rise in pre-tax profits to £74.1 million for the first six months of this year, as like-for-like company-managed shop sales jumped 7.4%.
The firm admitted the profit growth was also supported by ‘better recovery’ of cost inflation than a year earlier.
Ms Currie said the group took action to offset higher pay for its 32,000-strong workforce, having raised salaries earlier this year ahead of the increase in the National Living Wage.
She insisted no more price rises are planned for the rest of the year and said meal deal prices remain unchanged.
Greggs has faced criticism over recent weeks for price hikes of its baked goods.
In 2021, a sausage roll cost just £1. But at the start of 2022 the price rose to £1.05, then £1.10 in May 2022, £1.15 in October 2022 and 1.20 by January 2023.
A MailOnline graphic showing the increase in price of Greggs’ sausage rolls from 2021 to 2023
Chief executive, Roisin Currie, today revealed that Greggs has increased the prices of some items on its menu by 5p and 10p in recent weeks
Greggs has faced criticism over recent weeks for price hikes of its baked goods. Pictured: Greggs on Deptford High Street
Customers took to social media to complain about the recent price increases, with one person demanding to know ‘what’s going on’.
They wrote on ‘X’: ‘@GreggsOfficial what’s going on with these prices? 20%-30% price increase on some items! Week ago sausage roll was £1.20 now £1.50 Bacon Wrap was £2.50ish and now £3. Never liked Greggs any way got an excuse not to go there now.’
Another said: ‘Greggs sneakily put their sausage roll prices up by 5p. Mortified.’
‘Everytime I go to Greggs the price of the sausage roll goes up’, said another.
‘If Greggs is meant to be the food of the working class, then why does a meal deal cost just shy of a fiver and all you get is a sandwich and a drink? That’s like WH Smith levels,’ said another.
‘Ok the Greggs increase hurts. That was a staple for me woyoooo cost of living,’ another added.
Speaking about the price rises, Ms Currie added: ‘The biggest inflation cost right now is the increase in the National Living Wage and making sure our employees get the wage increases that are appropriate.
‘That puts pressure on the cost increases within the business.’
The group saw total sales rise 13.8% to £960.6 million over the first half.
Chief executive, Roisin Currie, today revealed that Greggs has increased the prices of some items on its menu by 5p and 10p in recent weeks
Greggs reported a a 16.3% rise in pre-tax profits to £74.1 million for the first six months of this year
It said sales were helped higher by new menu options, with iced drinks such as its mango and strawberry cooler and the strawberries and cream refresher now available in 500 shops, and with plans to roll out to a further 200 shops this year.
Pizza deals also drove strong sales growth, according to the group, which recently launched a four-slice sharing box to add to the hot food range.
Greggs said it remains committed to its long-term aims to have ‘significantly’ more than 3,000 shops across the UK, having opened 99 new shops and closed 18 to reach 2,524 in the first half.
It is planning to open up to 160 new shops on a net basis – those opened minus those closed – this year as a whole.
Greggs admitted the profit growth was also supported by ‘better recovery’ of cost inflation than a year earlier
The firm is redeveloping and extending its warehouses in Birmingham and Amesbury in Wiltshire, which is set to complete in the second half of the year and will help support another 300 shops.
Ms Currie said: ‘Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers.’
She added: ‘Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan.
‘The board remains confident in the long-term growth strategy, and we are investing to support that growth.’
Overall it said cost inflation in the first half of 2024 stood at 4% and is expected at 4% to 5% for the year as a whole.
‘Whilst uncertainties remain, the board’s expectations for the full-year outcome are unchanged,’ Ms Currie said.
