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Greggs Set to Raise Prices Again Amid Cost Pressures

October 5, 2025
  • #Greggs
  • #Business
  • #FoodIndustry
  • #CostPressure
  • #RetailTrends
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Greggs Set to Raise Prices Again Amid Cost Pressures

Introduction: Adjusting to Cost Pressures

High street favorite Greggs is gearing up to raise prices for the third time this year, reflecting industry trends that many retailers are grappling with. CEO Roisin Currie attributes these adjustments to significant cost increases, especially in staffing, which have been exacerbated by an unexpected £20 million spike in employer National Insurance contributions.

A customer exits a Greggs bakery

Rising Costs: A Closer Look

Starting Thursday, customers will see a 20p increase in the two-part and three-part breakfast deals, raising their prices to £3.15 and £4.15, respectively. Greggs aims to mitigate these pressures while maintaining its competitive edge in the crowded food market.

“The price hikes are essential given the cost landscape we are navigating,” said Currie.

The Strategic Response: Pricing Tactics

While the cost of biscuits will also see a small increase of around 5p, Greggs' famed sausage roll remains unaffected, having increased earlier this year to £1.30. Currie emphasizes that despite these changes, Greggs still positions itself as the most affordable option compared to its major high street competitors like Costa and Pret.

  • Two-part breakfast deal: £3.15 (up from £2.95)
  • Three-part breakfast deal: £4.15 (up from £3.95)
  • Biscuits: +5p

The Competitive Landscape

The price increases mirror trends across the industry. For instance, Tesco raised its meal deal prices recently by 25p, highlighting the widespread nature of these adjustments as many chains struggle under rising operational costs. Currie notes that this mindful approach to pricing is crucial as customers exhibit increasing price sensitivity.

Laura Lambie, a senior investment director at Rathbones, underscores this sensitivity: “Customers are mindful of price changes, suggesting that Greggs must tread lightly to retain its loyal customer base.”

Expansion Plans: Looking Ahead

Despite these financial hurdles, Greggs remains committed to growth. Currie confirmed plans to open an additional 120 locations next year, a calculated strategy aimed at capturing new market opportunities within retail parks and expanding further into southern England. “We are confident there is still room for growth,” she said, dismissing concerns that the brand may have reached its saturation point.

Potential Future Implications

As the company looks ahead, Currie is cautiously optimistic that pricing pressures could ease in the coming year. However, she acknowledges that upcoming Budget announcements could drastically alter this landscape. “A surprise shift in policy impacts our planning considerably,” she stated, referencing the previous year's National Insurance hike that caught many businesses off guard.

With further increases to the minimum wage on the horizon and potential shape-shifting corporate policies, Greggs must remain agile to navigate whatever challenges may arise.

Conclusion: The Path Forward

For now, the bakery sector must balance evolving cost structures against consumer expectations. As Greggs continues to solidify its foothold on the high street, these price adjustments reveal an essential recognition of external economic pressures. While the company is poised for expansion, the road ahead will require careful navigation of both consumer sentiment and operational costs.

Source reference: https://www.bbc.com/news/articles/c2lx2k2y70qo

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