One of the North’s favourite bakery chains hasn’t ruled out a price hike in the wake of inflation pressures in the UK. Greggs, known for the sale of baked goods, has hundreds of branches across Yorkshire that could see the price of sausage rolls, steak bakes, and Yum Yums rise.
The bakery used the publication of its annual results for 2021 to explain that its profit growth will be squeezed this year after a record profit year in 2021 after the previous year felt the impact of the COVID-19 pandemic.
CEO Roger Whiteside warned that the outlook for many commodity costs still “remains uncertain”.
“We have started 2022 well, helped by the easing of restrictions,” Mr Whiteside said.
“But cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however, given this dynamic, we do not currently expect material profit progression in the year ahead.”
The bakery chain says it’s expecting overall cost inflation of 6% to 7% mainly from raw materials, energy, and staff wages.
Greggs, and many other UK firms, have been grappled with staff and product shortages which have limited its recovery in sales. Despite this Greggs’s plans to open 150 net new stores this year were on track despite the challenges.