Greggs, Britain’s biggest bakery chain, said it had no plans to raise prices before Christmas after its cost inflation eased and sales soared over the last three months.
The retailer raised its prices in June, when some products went up by between 5p and 10p.
“We don’t have any plans currently to take any further price rises pre-Christmas,” the chief executive, Roisin Currie, told Reuters.
She said the cost of commodities such as dairy and vegetable oils had eased, while energy prices were less volatile than last year. But she warned there was still significant inflation in the market, particularly in staff wages and on meat and other proteins.
Currie said wages made up 40% of Greggs’ costs and the legal minimum wage was due to rise by more than 5% in April next year – suggesting the group may be forced to push through further price rises for its customers after Christmas – but it hoped to offset inflation with most cost savings.
The baker, known for its sausage rolls and vegan equivalents, said like-for-like sales – those in shops open more than a year – rose by 14% in the 13 weeks to 30 September. It stuck with its estimates for the full year, despite “the uncertainty in the economy as a whole”.
Greggs has expanded into offering food in the evenings and is rolling out its delivery service with a second partner, Uber Eats, after a trial.
The company opened 144 shops and closed 62, resulting in a total of 2,410 outlets, a slightly slower pace of expansion than hoped for. It plans to open more shops in train stations and airports to capitalise on the popularity of its pizza deals. Evening trade made up 8.8% of sales in the quarter.
Its autumn menu is now available, featuring a spicy chicken and veg bhaji baguette, with new vegetarian options including a cheese and honey mustard toastie, a veg bhaji flatbread and mozzarella and cheddar bites, as well as a spicy veg pizza. On the drinks menu, it is serving up pumpkin spice latte and hazelnut mocha and hazelnut hot chocolate.
Russell Pointon, of the research business Edison Group, said: “Greggs’ success lies in its strategic initiatives, including space expansion, new menu options and the expansion of evening trade.
“Their partnership with Uber Eats, alongside Just Eat, for delivery services further broadens their reach and caters to the changing preferences of convenience-seeking consumers.”
