Greggs Increases Price of Sausage Rolls by 5p Amid Rising Costs

Greggs, the popular UK bakery chain, has announced a price increase on select items, including a 5p rise on sausage rolls and their vegan counterparts. This decision comes despite earlier statements from the company indicating no plans for price hikes. Greggs has managed to keep prices stable on other offerings, such as breakfast and lunch meal deals, even as cost inflation hovers between 4% and 5%. The chain has been competing aggressively with fast-food giants like McDonald’s for market share in the breakfast and dinner segments. In March, Greggs claimed to have surpassed McDonald’s as the UK’s leading breakfast destination. At that time, the company had assured customers that no further price increases were anticipated following a previous rise of 5p to 10p on certain items in December. However, McDonald’s recently reported a decline in global sales for the first time in nearly four years, attributing it to consumers opting for cheaper dining options amid rising inflation. Despite the price adjustments, Greggs has seen a positive impact from the ongoing cost of living crisis, as consumers increasingly seek affordable meal solutions. The company reported a 16% increase in underlying first-half profits, reaching £74 million, with sales climbing nearly 14% to £961 million. Analysts predict modest upgrades in profit expectations, although Greggs maintains its outlook for the full year. The summer sporting events, including Euro 2024 and the Olympics, have also contributed to increased digital engagement and home delivery services, as fans purchase snacks for home viewing. Greggs is focusing on expanding its evening sales, which are growing faster than average store sales, viewing this segment as a key area for future profitability.