Prices of sausage rolls and steak bakes at Greggs are set to soar as costs rise, bakery chain warns
Prices of sausage rolls and steak bakes at Greggs are set to soar, the High Street bakery chain has warned.
The company said its ingredients, packaging and energy bills all shot up in the first half of the year, with costs across the group set to rise by 9 per cent altogether this year.
So far the chain has added up to 10p to the price of some products since the start of the year, but said it has ‘worked hard’ to absorb as much of the costs as possible.
So far the chain has added up to 10p to the price of some products since the start of the year
But customers have not been put off. Results yesterday showed sales in the six months to July 2 jumped 27 per cent to £694.5million, from £546.2million a year earlier.
But despite bumper sales the company was hammered by the return of business rates, the increase in VAT and soaring inflation, and profit was broadly flat at £55.8million.
AJ Bell’s Russ Mould said: ‘The danger for Greggs is that people make their own packed lunches rather than grabbing food and drink on the go but there is little sign of that shift happening at any scale just yet.’