Greggs to test 24 hours drive-thrus as it faces rising prices

The firm, which opened its first shop in Newcastle in 1951, plans to extend the opening hours of some outlets and test 24 hour drive-thrus.

The chain, which made profits of 148.3 m last year, put its growth down to the value it was offering customers affected by the rising cost of living.

The cost of ingredients for Gregg's pasties and pies has gone up, along with its energy bills and staff wages.

In January the price of a sausage roll went from 1.15 to 1.20 - the fourth price increase since 2021 when the snack cost was 1.

Greggs said it would renovate another 150 and relocate 40 of its shops to larger sites, as well as opening 150 new shops.

The opening hours of 500 shops were extended to 20: 00 or later last year, and in 2023, Greggs said it planned to extend hours in 300 shops to 21: 00.

Greggs was founded in the late 1930s by John Gregg when he began delivering yeast, eggs and confectionery on his bicycle to homes around mining terraces in Newcastle.

The company opened its first shop on Gosforth High Street in 1951 and has gone on to become a well-known brand.

Sometimes people are too busy to make sandwiches with the best will in the world and even when household budgets are under real pressure. He said that there is always going to be a place for food-on-the-go venues and Greggs' offering is perfectly pitched in the current environment.

However, Mr Mould warned Greggs to be careful, ambition does not tip over into hubris and questioned how popular the brand might be when people have more money in their pocket.