Greggs
Greggs plc is a British bakery chain headquartered in Newcastle upon Tyne, specializing in affordable, freshly prepared takeaway foods such as sausage rolls, pasties, bakes, sandwiches, and sweet pastries.[1][2] Founded in 1939 by John Gregg as a local delivery service for eggs and yeast in Newcastle, it opened its first shop in 1949 and has since expanded nationally.[3] As of September 2025, Greggs operates 2,675 shops across the United Kingdom, comprising company-managed and franchised outlets, making it the country's leading bakery retailer by store count.[4] The company employs approximately 33,000 staff and focuses on value-driven, on-the-go meals, with annual sales exceeding £2 billion in recent years.[5][6] Greggs has achieved notable growth through consistent store expansion—adding over 150 net new locations annually—and menu adaptations to consumer preferences, including vegan and plant-based products, while maintaining a reputation for quality at low prices.[3][7]History
Founding and Early Expansion
Greggs was founded in 1939 by John Gregg in Newcastle upon Tyne as a door-to-door delivery service, transporting fresh eggs and yeast to local families via pushbike amid the onset of World War II restrictions on food supply and distribution.[3] The operation began modestly, leveraging Gregg's experience in baking supplies to serve wartime demand for essentials, with initial focus on reliable, affordable provisions rather than retail baking.[8] In 1951, following postwar recovery and easing of rationing, Gregg opened the company's first retail shop on Gosforth High Street, marking the shift from deliveries to on-site baking and sales of bread, basic pastries, and early savoury items like sausage rolls tailored for quick takeaway consumption.[9] This high-street format emphasized vertical integration from the outset, with in-house production ensuring daily fresh batches to maintain low costs and quality control in a competitive local market dominated by independent bakers.[10] Under continued family stewardship after John Gregg's death in 1964, his son Ian assumed leadership and accelerated regional expansion in northeast England, opening additional outlets that capitalized on the growing preference for convenient, budget-priced hot snacks over traditional sit-down bakeries.[8] By the early 1970s, the chain had established a network of shops supported by centralized baking facilities, enabling scalable output while preserving the core model of affordable, ready-to-eat goods that differentiated Greggs from pricier competitors.[10] This foundational phase laid the groundwork for efficiency-driven growth, with early store proliferation tied directly to controlled supply chains rather than external financing or acquisitions.National Growth and Acquisitions
Greggs accelerated its expansion following its flotation on the London Stock Exchange in 1984, which provided capital for growth with an initial market capitalization of £15 million and a network of approximately 260 stores primarily in northern England.[11] This public listing enabled investments in new outlets and infrastructure, transitioning the company from a regional baker to a broader national presence through organic openings and strategic market entries.[12] A pivotal acquisition occurred in 1994 when Greggs purchased the Bakers Oven chain from Allied Bakeries for £18.5 million, adding 424 stores and two bakeries, nearly doubling its footprint and facilitating penetration into southern and midland markets.[10] This deal exemplified Greggs' tactic of leveraging buyouts to achieve rapid scale while integrating acquired sites into its standardized model of fresh, affordable baked goods. By 1998, the company had exceeded 1,000 outlets, surpassing the 1,000-store milestone through a combination of these integrations and new builds focused on high-traffic urban locations.[10] Greggs refined its format during this period to prioritize convenience and on-the-go consumption, emphasizing high-volume production of items like sausage rolls, pasties, and sandwiches sold at low prices to drive footfall and repeat visits.[8] Centralized manufacturing hubs supported this efficiency, allowing consistent quality and cost control across expanding regions without delving into full-service bakery operations. Store numbers continued climbing, reaching approximately 1,500 by 2010, underscoring sustained penetration tactics amid competitive high-street dynamics.[13]Contemporary Challenges and Adaptations
During the COVID-19 pandemic, Greggs faced significant disruptions from nationwide lockdowns, closing all stores for three months in early 2020 and experiencing a £357 million sales decline over the year.[14][15] To mitigate losses, the company pivoted to takeaway services and formed a delivery partnership with Just Eat, rolling out the service nationally by late 2020, which by mid-2021 accounted for 8.5% of sales across 837 locations.[16][17] These adaptations supported a robust sales recovery in 2021, with like-for-like sales growth exceeding expectations and enabling forecasts for a return to profitability.[18][19] Post-pandemic, Greggs pursued expansion amid economic headwinds, opening 87 net new stores in the first half of 2025, including relocations.[20] However, in its third-quarter trading update on October 1, 2025, the company revised its full-year target downward to approximately 120 net new openings from an initial 140-150, citing softened consumer confidence and persistent cost pressures.[21][4][22] External factors like weather further challenged operations, with a July 2025 heatwave reducing footfall and limiting like-for-like sales growth to 1.5% in the third quarter ending September 27.[23][24] Greggs responded by enhancing convenience formats, including approvals for 24-hour operations at select urban branches in September 2025 and ongoing drive-thru expansions to capture demand shifts.[25] These measures contributed to sales recovery post-heatwave, with total sales rising 6.1% in the quarter.[26][27]Corporate Leadership and Governance
Key Executives and Chairmen
Roger Whiteside served as Chief Executive of Greggs plc from February 2013 to May 2022, during which the company shifted from a decentralized bakery model reliant on in-store baking to a centralized food-on-the-go operation, enabling expanded store openings and menu diversification including the introduction of vegan products that boosted market appeal.[28][29] This period saw sales grow substantially, with full-year earnings upgraded in early 2022 despite trading challenges, underpinning a strategy that positioned Greggs for post-pandemic recovery.[30] Roisin Currie succeeded Whiteside as Chief Executive in May 2022, leading efforts to double sales by 2026 through accelerated store expansion and operational efficiencies, resulting in record-breaking turnover exceeding £2 billion in fiscal 2024.[31][32] In 2025, however, Currie navigated headwinds from a June heatwave that deterred customer footfall and compressed margins, issuing a profit warning for full-year operating profit potentially below 2024 levels, with first-half pre-tax profit falling to £63.5 million from £74.1 million the prior year; she emphasized cost discipline alongside sustained capital expenditure of £300 million to support long-term growth.[33][34][35] Ian Durant held the position of Chairman from May 2013 to 2022, overseeing governance during a transformative phase that included leadership transitions and strategic shifts toward national scalability, contributing to enhanced board stability amid retail sector volatility.[36] Matt Davies assumed the Chairmanship in 2022, bringing prior experience from executive roles at Tesco and Halfords to guide ongoing expansion and investor relations in a competitive market.[37]Board Composition and Decision-Making
Greggs plc's board comprises three executive directors and six independent non-executive directors, ensuring a balance that facilitates robust oversight of management while incorporating external perspectives. As of December 28, 2024, the board achieved 50% female representation, with one director from an ethnic minority background, reflecting empirical progress in gender diversity amid broader UK retail sector trends toward near-parity but slower ethnic representation gains.[5][38] All non-executive directors meet the independence criteria under the UK Corporate Governance Code, with no material conflicts or overboarding issues reported.[39] The board operates through specialized committees to enhance decision-making accountability. The Audit Committee, chaired by Kate Ferry and comprising four independent non-executive directors, convened four times in 2024 to oversee financial reporting, internal controls, and risk management, including enterprise-wide risk assessments.[39] The Remuneration Committee, led by Lynne Weedall, met three times to determine executive pay aligned with performance metrics, while the Nominations Committee, under Chair Matt Davies, focused twice on succession planning and board composition reviews, utilizing external consultants for objectivity.[40] These structures support the board's full-year schedule of seven meetings, where strategic risks—such as supply chain disruptions historically mitigated through stockpiling and domestic sourcing post-Brexit—are evaluated via a board-approved enterprise risk management framework with quarterly Risk Committee input.[39][41] Decision-making emphasizes causal risk oversight and long-term stability, contributing to Greggs' progressive dividend policy. The board maintained a 69p ordinary dividend per share for 2024, covered twice by underlying earnings, alongside a 19p interim payout in 2025, reflecting governance-driven fiscal prudence amid operational resilience.[40] Compliance with the UK Corporate Governance Code, affirmed through external board evaluations, underpins this approach, with an ISS governance quality score of 2 indicating strong alignment on audit, board, and shareholder rights pillars.[42] No deviations from code provisions were noted, prioritizing empirical accountability over nominal diversity targets.[39]Business Operations
Store Formats and Geographic Reach
Greggs primarily operates high-street bakery shops designed for quick-service accessibility, with over 2,600 locations across the United Kingdom as of 2025, emphasizing dense coverage to optimize supply chain efficiency.[43] The chain added a net 57 stores in the early part of 2025, reaching a total of 2,675 outlets, with plans for approximately 120 net new openings for the full year to further enhance geographic penetration.[23] This expansion includes formats such as drive-thru sites, which numbered around 30 by 2024, catering to roadside and travel hub customers with full menu offerings including hot bakes and beverages.[44] Geographically, Greggs maintains a strong focus on England, which hosts the majority of its stores—approximately 80% of the total network—particularly in northern regions where outlet density aligns with higher demand for affordable baked goods.[45] Scotland, Wales, and Northern Ireland account for the remainder, with 289, 173, and 21 locations respectively as of late 2024 data, reflecting a strategy of national but uneven distribution favoring population centers in England.[46] The company has no significant international presence, having prioritized domestic consolidation over overseas ventures to leverage localized production and distribution advantages.[47] Store innovations include eco-friendly drive-thrus incorporating sustainability measures like reduced water and energy use, launched in sites such as Winchester in June 2025, and trials of smaller "bitesize" formats aimed at urban high-footfall areas starting in the second half of 2025.[48][49] Extended hours, including 24-hour drive-thru pilots in high-demand locations, have been tested to capture evening and overnight traffic, though some applications faced local opposition over potential anti-social behavior concerns.[50][51] Outlet shops, limited in number and focused on selling discounted unsold or irregular stock, operate mainly in northern and central England to minimize waste while supporting the core high-street model.Supply Chain and Production
Greggs maintains a vertically integrated production model, owning and operating its manufacturing facilities to control the baking process from dough preparation to finished goods, which enables high-volume output at low unit costs. The company produces baked products at centralized bakeries across the United Kingdom, supporting daily distribution to over 2,000 stores. This structure facilitates rapid scaling and menu adjustments, with production focused on core items like sausage rolls, yielding over 140 million units annually.[52][53] Ingredient sourcing emphasizes partnerships with accredited suppliers adhering to standards such as Red Tractor for UK farm assurance and GLOBAL G.A.P. for agricultural practices, promoting transparency and quality control in the supply chain. While primary meats like beef are sourced from the UK, Europe, and occasionally South America, the model prioritizes domestic suppliers where feasible to ensure freshness and reduce transit times.[54] Vertical integration minimizes reliance on external processors, allowing Greggs to internalize efficiencies in mixing, baking, and packaging.[55] In 2025, production faced pressures from approximately 6% overall cost inflation, driven by rising energy and wage expenses, which strained margins amid broader economic challenges. However, in-house manufacturing mitigated these by enabling process optimizations and volume leverage, maintaining competitive pricing through economies of scale rather than full pass-through to consumers. This approach has historically supported resilience, as fixed production costs are spread across high output volumes.[56][57]Digital Services and Logistics
Greggs offers digital ordering through its mobile app and website, enabling Click & Collect services where customers select items online, reserve a time slot, and pick up orders directly from stores to bypass queues.[58] This feature was rolled out nationwide starting in 2020, supporting rapid fulfillment integrated with store operations.[59] For delivery, Greggs partnered exclusively with Just Eat in January 2020 to provide nationwide home delivery of products like sausage rolls and pasties, following a successful trial that excluded competitors such as Uber Eats and Deliveroo initially.[60][61] In October 2023, the company expanded partnerships to include Uber Eats, broadening access to third-party delivery platforms for wider customer reach.[62] These integrations leverage external logistics networks for on-demand delivery, adapting to shifts in consumer preferences toward convenience amid rising takeaway demand. In June 2025, Greggs updated its loyalty app to accelerate reward redemption, allowing users to claim perks like free items faster, which coincided with ongoing enhancements to payment and Click & Collect processes.[63] These digital improvements supported total sales growth of 6.1% in the third quarter of 2025 (13 weeks to September 27), with like-for-like sales in company-managed shops up 1.5%, despite a slower July impacted by unusually high temperatures reducing footfall.[64][65] Logistics for digital services rely on Greggs' centralized supply chain, transformed through a £100 million investment program initiated around 2017 to optimize production and distribution via regional bakeries and depots.[66] Route optimization software from Paragon enables efficient transport planning, reducing costs and ensuring fresh goods availability for same-day Click & Collect and partner deliveries.[67] Further expansions, including automation at sites like a new frozen food facility in 2024, enhance capacity for quick-turnaround orders without compromising product quality.[68] This infrastructure supports digital scalability, with regional hubs facilitating daily fresh baking and distribution to over 2,500 stores.[43]Products and Menu
Core Product Lines
Greggs' core product lines center on savory pastries such as sausage rolls, steak bakes, and pasties, which anchor the menu and drive empirical demand through consistent popularity. The sausage roll stands as the chain's enduring bestseller, outselling newer introductions like pizzas despite menu diversification.[69] Steak bakes, filled with beef in gravy encased in puff pastry, and cheese & onion pasties similarly rank among top performers, reflecting customer preference for portable, hearty baked items. Complementing these are sandwiches, including options like chicken and bacon at £3.50, and sweet treats such as yum yums priced at £1.20, which broaden appeal while maintaining the bakery heritage.[70] Pricing emphasizes value for working-class consumers, with staple savory items under £3—sausage rolls at £1.30 and bakes at £2.50 as of October 2025—enabling sub-£5 transactions even for combinations, a strategy honed amid cost pressures to preserve accessibility.[71][70] Nutritionally, core offerings prioritize carbohydrates from flaky pastry and fillings, with a standard sausage roll delivering 331 calories primarily from fats and carbs.[72] Greggs discloses this data via in-store labels, packaging, apps, and websites, exceeding voluntary efforts pre-2022 to align with mandatory UK out-of-home calorie labeling for large chains introduced that year.[73][74] This transparency supports informed choices amid the high-energy-density profile of pastries.Innovations and Seasonal Offerings
In January 2019, Greggs introduced the vegan sausage roll, a plant-based alternative to its traditional meat-filled product, which rapidly became one of its fastest-selling items and drove a 58% increase in underlying profits for the first half of the year.[75] Total sales rose nearly 15% during this period, attributed in part to heightened footfall from vegan-curious consumers.[76] This launch exemplified Greggs' responsiveness to rising demand for meat-free options amid growing plant-based trends.[77] Greggs maintains annual seasonal offerings, particularly festive bakes featuring flavors like turkey and stuffing or sweet mince, which bolster holiday performance; for instance, in late 2023, these items alongside seasonal lattes contributed to a 9.4% rise in comparable fourth-quarter sales.[78] Such limited-time products leverage consumer preferences for indulgent yet affordable treats during peak periods, sustaining revenue momentum without permanent menu expansion.[78] Amid 2025 sales slowdowns, Greggs innovated with value-focused meal deals, launching the £5 "Big Deal" in September, enabling selection of a main (such as sandwiches or pasta), drink, and side to counter economic pressures and maintain affordability.[79] [80] This adaptation addressed softening demand by bundling options, though subsequent price adjustments to breakfast deals reflected ongoing cost challenges.[81] To align with health-conscious shifts, Greggs expanded lower-calorie and reduced-sugar items, achieving over 30% of its 2024 menu as "Healthier Choice" options under 400 calories, including salads, flatbreads, and a 20% sugar reduction across sweets.[82] [83] Earlier efforts, like the 2016 sourdough pasty with under 300 calories and reduced fat, demonstrated sustained commitment to nutritional improvements driven by consumer data.[84] Product rationalization, such as rebranding low-demand rectangular pasties to bakes in 2017, further streamlined the menu toward viable innovations.[85]