Greggs bumps up price of iconic snack once again to cover rising staff costs
GREGGS has bumped up the price of a sausage roll once again to cover rising staff costs.
The bakery chain yesterday confirmed the price of its much-loved pastry snack and its vegan alternative had risen by 5p to £1.25.
This means the price of Greggs’ most popular product has jumped by a quarter in two years — up from £1 in 2022.
And customers can expect to pay more in train stations, airports and in London, which can charge £1.45 for a sausage roll.
The development comes despite boss Roisin Currie saying Greggs “had no price increases on the cards” back in March.
She yesterday said the move was necessary after experiencing a rise in costs from having to pay a higher national living wage for its 32,000-strong workforce.
Ms Currie promised there were “no plans” for further price increases later this year.
Other retail bosses, including Next, have also highlighted the inflationary impact of wage rises for staff.
But customers have taken the biggest hit by far, as Greggs has recorded a rise in profits in the last six months.
The firm saw its underlying pre-tax figures jump by 16.2 per cent to £74.1 million.
Its sales were also 13.8 per cent higher at £960.6million, helped by new store openings.
Meanwhile, its like-for-like sales rose by 7.4 per cent in the first half of the year.
Greggs credited sales to new menu items including new “over-ice” drinks and its pizza deals.
Its continued growth puts rival McDonald’s in the shade.
The US fast food giant admitted a day earlier that its sales had slumped in all markets after several price hikes.
Greggs opened 99 new shops in the last six months, bringing its outlets to over 2,500 in total.
It has plans for 160 new locations this year, with Ms Currie highlighting the potential to move into empty spaces opened up by closures from Ted Baker, Body Shop and Carpetright.
The chain also wants more stores to open late, so it can continue to pick up customers after the breakfast and lunchtime rush.
Staying in the black
BRITS’ burgeoning thirst for Guinness has been a rare bright spot for Diageo, the under-fire drinks giant.
The FTSE 100 maker of Johnnie Walker and Tanqueray gin had £5billion wiped off its valuation yesterday due to its global slump.
Diageo’s sales in Latin America have fallen by more than a fifth in the past year, after consumers switched to cheaper brands to save cash.
Boss Debra Crew said there was an “extraordinary consumer environment”.
But sales at Diageo in the UK rose by 5 per cent on the back of strong figures for Guinness and Smirnoff vodka.
Even Prince William and wife Kate were seen enjoying a Guinness, when they raised a glass to members of the 1st Battalion Irish Guards, following their St Patrick’s Day Parade at Mons Barracks in Aldershot, in March last year.
Nuno Teles, managing director for Diageo Great Britain, told The Sun it was a “golden year for Guinness” after the stout grew sales by 30 per cent.
The black stuff was boosted by 27 per cent more women drinking Guinness in the past year.
And the launch of its 0.0 per cent booze-free version has also helped double Guinness brand sales.
BP drills new Gulf oil field
BP is drilling a new oilfield in the Gulf of Mexico, 14 years after the Deepwater Horizon oil spill disaster — one of the largest environmental catastrophes in history.
The oil giant yesterday announced it would start building a new platform in the Kaskida oilfield, which could generate 10 billion barrels of oil or 80,000 barrels a day.
A spokesman said that BP had learnt a lot from Deepwater Horizon, while boss Murray Auchincloss called the new oilfield a “high-quality project” with “less risk”.
The company is also building a green hydrogen facility in France, where the fuel is produced from water without carbon emissions.
The new projects came as BP unveiled better-than-expected profits of £4.3billion for the past six months.
It also rewarded investors with a higher dividend and £1.35billion in share buybacks.
£18M tip at Games
GAMES Workshop is rewarding staff with a £18.4million bonus after hailing the best results in its history.
The maker of fantasy figures reported a 15 per cent rise in sales to £540.2million, while profits rose by 35 per cent to a record £230million.
Its 1,500 staff will pocket £12,000 each.
The business makes a 66 per cent profit margin on its plastic figurines and is now valued at £3.4billion, more than established retailers WHSmith and Pets At Home combined.
OFGEM’S U-turn
THE energy regulator is keeping its ban on acquisition-only customer tariffs — two months after it proposed scrapping it.
The U-turn by Ofgem came after campaigners said cheaper tariffs for new customers were unfair on older customers and that the scheme was a driver behind suppliers going bust.
Ofgem said in May that falling prices meant suppliers could spark competition with the rates.
But the tariff ban will now stay until March 31, 2025.
Rachel Fletcher at Octopus Energy said: “It’s reassuring Ofgem has retained the ban.”
Bru-tiful
THE Scotland team making the Euros was a boost to Irn-Bru.
A footie-themed advert laden with innuendos saw sales jump.
Maker AG Barr said it was on track to make £221million from the 5 per cent sales increase.
Car quiz delay
MILLIONS of drivers will have to wait longer to see if they will be awarded compensation for mis-sold car finance after the watchdog extended its probe.
The Financial Conduct Authority yesterday said it would extend its investigation until May 2025, despite starting its review four years ago.
Around 2.2million drivers used hire purchase and personal contract purchases from lenders including Barclays, Lloyds and Santander.
The extension also gives them extra time to respond to complaints.