Greggs has reported a significant surge in sales and profits, attributing its robust performance to an expanded range of iced drinks and salads that proved particularly popular during this summer’s heatwaves and attracted a growing number of health-conscious consumers.
The bakery giant announced total sales reaching £1.1 billion for the 26 weeks to 27 June, marking a 7.2 per cent increase compared to the same period last year.
This growth was substantially bolstered by the opening of 34 new shops on a net basis. Stripping out the impact of these new locations, like-for-like sales at company-managed shops rose by 2.1 per cent, while franchised outlets saw a 1.3 per cent uplift.
Pre-tax profits for the half-year period jumped by a fifth to £76 million. The company noted that this boost was partly due to the successful launch of its ‘bake at home’ frozen range in Tesco, building on an existing partnership with Iceland Foods.
Innovation across its menu, designed to align with evolving consumer food trends, has been a key driver in attracting new customers. This includes popular items such as iced matcha lattes and the chicken roll, introduced in April as an alternative to its well-known sausage and vegan rolls.
Greggs has also broadened its salad offerings with new and reformulated recipes, focusing on higher protein content and clearer nutritional labelling to appeal to health-aware shoppers.
These cold and healthier options were crucial in preventing a sales dip during the recent heatwaves, when demand for hot food typically wanes.
Roisin Currie, Greggs’ chief executive, told the Press Association: "You do see that when temperatures get above 30 degrees that people start to eat less. We’ve been much more resilient this year than previously because we learned some lessons."
Ms Currie highlighted the company’s focus on "keeping it exciting for customers" through new products like a blueberry matcha iced latte, which has resonated particularly with younger consumers. She added: "We had also just launched, before the heatwave started to hit, a new range of salads, with some favourites in there but also some new products such as our prawn layered pasta salad and our chicken caesar along with our grains and green salad. The timing of those was great and they have sold well."
Customers also gravitated towards fruit pots, yoghurts, wraps, and picnic items like packs of sausage rolls during the hot weather.
However, Ms Currie acknowledged the enduring appeal of indulgence: "But the customer also wants that indulgent treat every so often. So we do still see that while health is very important, actually indulgence is also a trend that’s out there – customers want that sweet treat, not every day but when they want to treat themselves."
Greggs operated 2,773 shops by the end of June and anticipates opening between 100 and 110 new locations on a net basis throughout 2026, many in areas currently without a Greggs within a mile. The company is also trialling a ‘Greggs Express’ format, featuring self-service units with a smaller selection of food and drinks within petrol stations, with 10 expected to be operational by the end of the year.
Regarding costs, Greggs reported overall inflation of 2.2 per cent in the first half of the year, a figure it expects to maintain for the remainder of the year, which is lower than the approximately 3 per cent anticipated in April.
Ms Currie cautioned: "The volatility of the Middle East and the impact on energy prices probably plays into what may happen towards the back end of this year and into 2027." She also noted that wages remain a significant cost in the current inflationary environment, though ingredient costs for items like coffee and cocoa have begun to decrease.
Ms Currie confirmed that Greggs has no further price rises planned, following increases to its breakfast, lunch, and "big" deals in May. She stated: "Our prices are in a good place and we will now be working hard to protect the consumer and making sure that we can offer that value throughout the yest of the year."