Greggs warns cost of pasties could rise as bakers hit by supply chain crisis

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Greggs warns customers could have to pay more for pasties and steak bakes following the coronavirus crisis.

The impact of the pandemic has forced the bakery chain into declaring it is still suffering staff shortages.

Greggs says it is also under pressure from the rising cost of ingredients from suppliers, meaning its own prices will need to go up too.

Fans of the shop can expect to notice a change in the price of their favourite snacks and treats from as soon as the end of this year.

Greggs said in its financial results: "Greggs has not been immune to the well-publicised pressures on staffing and supply chains and we have seen some disruption to the availability of labour and supply of ingredient.

"Food input inflation pressures are also increasing. Whilst we have short-term protection as a result of our forward buying positions we expect costs to increase towards the end of 2021 and into 2022."

The blow comes little over a month after Greggs was forced to slash its menu size due to delivery issues caused by the lorry driver shortages.

Figures released by Greggs though suggest the bakery has reason to remain optimistic about its business.

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Following the relaxation of coronavirus restrictions, stores have bounced back with a 3.5% increase in the third quarter of the year compared to the same period from 2019.

That was helped by the lack of Brits travelling abroad for their summer holiday and instead continued to shop at Greggs while staying in the UK.

It said its full-year performance is expected to surpass previous expectations, as it revealed plans to double its turnover to almost £2.5billion in the next five years.

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Greggs, which has more than 2,100 stores across the UK, will also open more new shops than originally planned, the Mirror reports.

It wants to bring forward the pace of new store openings to 150 net new shops next year from 100 expected during 2021. It plans to have 3,000 shops in total.

Greggs also wants to roll out evening trading hours to more shops, which would be until 8pm, and push its app and delivery sales.

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It said: "Our success in recent years has enabled us to achieve a five per cent share of the food on-the go market, despite offering our services primarily in the walk-in channel and limited to daytime opening hours.

"As we scale Greggs to become a fully-fledged, multi-channel, food-on-the-go brand for all times of the day we have developed an ambitious target to double revenue to circa £2.4bn by 2026.

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