Greggs warns that prices are likely to increase again as costs continue to soar

Greggs has warned that its prices are likely to increase for the second time this year as it continues to struggle with cost hikes.

Despite the bakery chain already increasing some of its prices at the start of this year, it has announced that it further changes are expected, saying the ‘cost of doing business’ is expected to rise between 6% and 7% due to higher staffing and ingredient costs.

However, Greggs has stressed that it will try to protect its reputation for being ‘outstanding value for money’. 

A Greggs spokesperson said: “This has necessitated some price increases, which were made at the start of this year, and further changes are expected to be necessary.

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“As ever, we will work to mitigate the impact of this on customers, protecting Greggs’ reputation for exceptional value in the freshly-prepared food-to-go market.

“Given this dynamic, we do not currently expect material profit progression in the year ahead.”

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The bakery’s chief executive Roger Whiteside has confirmed that the company will be assessing whether it is able to change prices before it does, saying it ultimately comes down to ensuring that customers will still choose to spend money at Greggs even if prices go up.

He said: “We’ve got no plans to raise prices currently, but obviously that’s going to have to remain under review given the way the markets are moving around the world on commodity food prices in particular.

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“If the market allows price increases to move onto customers, then we will have to attempt to do that, if it doesn’t then we won’t be able to. You’re trying to position price to make sure you maximise sales.”

Whiteside added that, while the business has no direct link to Russia’s invasion of Ukraine, the situation has triggered global price rises.

Russia and Ukraine supply around a third of the world’s wheat exports, with Ukraine being a major supplier of sunflower oil.

Russia’s invasion has also brought with it a huge rise in gas prices, with petrol prices across the UK and the rest of the world hitting record highs.