Outgoing Greggs boss warns of further price hikes

Outgoing Greggs boss warns of further price hikes

Fast food chain Greggs has warned of increasing costs and again warned customers prices will rise as as a result.

In March the business warned changes to taxes and higher costs for energy, food and staff would push up its costs between 6% and 7% and in an update to shareholders the company said cists were increasing across the market.

Roger Whiteside, who is stepping down as Greggs’ chief executive, said: “At the start of the year we made some increases and then, when the reduced rate of VAT went back to normal, we had to add that back onto prices where we’d been able to pass the reduction to customers during Covid.

“We are now going to have to make some increases again soon.

“It will be on selected items, but it will be across different areas, so there might be 5p or 10p increases on some products.”

Greggs also said customers will be feeling the squeeze from the rising cost of living, something that could cause them to tighten their belts.

Prices Greggs charges customers already went up in the early part of 2022.

On Monday Greggs said that like-for-like sales at the shops it manages rose by more than 27% in the first 19 weeks of this year, compared to 2021.

But it also pointed out that this was a flattering comparison due to the Covid restrictions in place a year ago.

In the 10 weeks to May 14, a period when restrictions were easing in 2021, sales were up nearly 16%, Greggs said.