Greggs Defies Challenges with Smart Price Adjustment

The British bakery giant Greggs has announced that it will increase the prices of some of its popular products, including sausage rolls, coffee, and donuts. The reason for this decision is the pressure of rising costs, which must be partially passed on to customers. The nationwide price for the traditional sausage roll increased by 5 pence to 1.30 pounds. This amount can vary by region. Roisin Currie, the CEO of Greggs, explained that the company is facing higher expenses this year due to increased wages for employees and the rise in the employer's share of social contributions. About two-thirds of the workforce benefited from a wage increase of about 6 percent at the beginning of 2025, Currie further explained. Although this is positive news for employees, the company had to adjust some prices by 5 to 10 pence. While some product prices have risen, the CEO emphasized that certain menu offers, such as breakfast or lunch, have remained unchanged. Greggs still places great value on affordable offers for customers. In light of potential further price increases, Currie stated that the company continues to fight against inflationary "headwinds." Additionally, Greggs is among the British retailers that faced a higher tax burden this year due to planned increases in the national employer's share of social security contributions. This occurred after Greggs and more than 70 other companies appealed to Finance Minister Rachel Reeves last year, stating that price increases were inevitable as long as changes in the October budget loomed. The increased social contribution burden will add about 1 percent to the company's overall costs in terms of inflation, according to Currie. Despite these challenges, Greggs recorded a sales growth of 2.5 percent in the fourth quarter and achieved an annual revenue of 2 billion pounds for the first time in 2024 – an increase of 11.3 percent compared to the previous year. However, this report led to a more than 10 percent drop in Greggs' share price. The Newcastle-based company also noted that declining consumer confidence since the summer has led to lower customer frequency and spending in city centers. Nevertheless, Currie remained optimistic that wage inflation could give British consumers more purchasing power, which should invigorate retail.