Greggs to open 150 shops and extend opening hours

Greggs plans to open around 150 new bakeries in 2023 as part of major plans to expand.

The firm, which opened its first shop in Newcastle in 1951, also plans to extend the opening hours of some outlets and test 24-hour drive-thrus.

It comes after the chain posted bumper profits for 2022, despite cost of living pressures hitting consumers.

The bakery chain has put up its prices several times in the last few years blaming rising costs.

Under the new plans Greggs, which currently has around 2,300 shops, aims to open more branches in airports, train stations, supermarkets and shopping centres.

It also said it hoped to grow its total number of bakeries to over 3,000 in the coming years.

The chain - which made profits of £148.3m last year - put its growth down to the "value" it was offering customers impacted by the rising cost of living.

Inflation - the rate at which prices rise - is near a 40-year-high, forcing many consumers to cut back their spending or find way ways to cut costs.

• Starbucks to open 100 new UK stores this year

• Greggs warns of more price increases

Rising prices

However, the cost of ingredients for Gregg's pasties and pies has been going up, along with its energy bills and staff wages.

As a result, the chain's prices rose in 2022 and 2023. In January it increased the price of a sausage roll from £1.15 to £1.20 - the fourth price rise since 2021 when the snack cost £1.

As well as opening 150 new shops, Greggs said it would refurbish another 150 and relocate 40 of its shops to larger sites.

Last year, the opening hours of 500 shops were extended until 20:00 or later and in 2023, Greggs said it planned to extend hours in 300 shops to 21:00.

Greggs was first founded by John Gregg in the late 1930s when he began delivering yeast, eggs and confectionery on his bicycle to homes around mining terraces in Newcastle.

The company then opened its first shop on Gosforth High Street in 1951 and the firm has gone onto to become a well-known brand.

'Perfectly pitched'

Russ Mould, investment director at AJ Bell, said the firm's value proposition put it in a good place in the current climate.

"With the best will in the world and even when household budgets are under real pressure sometimes people are just too busy to make sandwiches. There is always going to be a place for food-on-the-go venues and Greggs' offering is perfectly pitched in the current environment," he added.

However, Mr Mould warned Greggs needed to be "careful ambition does not tip over into hubris" and questioned how popular the brand might be when "people have a bit more money in their pocket".

Greggs is not alone in its expansion plans, with Starbucks announcing on Monday plans to open 100 new stores across the UK this year.

Only last year Starbucks was reportedly looking to sell its UK operations after sales were hit hard during the pandemic.