Greggs staff to receive share of £17.6 million bonus after record year

Staff at Greggs are to receive their share of a £17.6 million bonus pot after the high street bakery chain made record profits last year.

Thousands of staff will receive the bonus in their wages, which will be paid at the end of March, to recognise their ‘hard work and effort’ throughout 2023, CEO Roisin Currie announced.

As shoppers continuously seek out bargains and value for money throughout the cost of living crisis, Greggs saw an increase of 27% in profits to £188.3 million last year.

The bakery chain said 25,000 employees – out of a total of 32,000 across the UK – would receive the £700 bonus in their March pay packets.

Under a profit share agreement, the company shares 10% of profits each year with its employees who have been working at the company for at least six months.

However, Ms Currie said the company was not complacent about tough high street trading conditions, and added that Greggs would not increase its prices this year.

She said: “We have no plans for further price rises. We’re still talking about the cost of living crisis. We know that the consumer disposable income remains under pressure.

“It’ll be another tough year. Last year and the year before were tough for the consumer, and that may continue through this year. What’s helpful is that we are seeing a lower level of inflation in the economy.”

Ms Currie also urged Chancellor Jeremy Hunt, as he unveiled the spring budget on Wednesday (March 6th), to ‘put money in consumer’s pockets’.

Greggs has said it is confident it can deliver ‘another good year of progress’ throughout 2024.

In comparison, store sales growths have slowed to 8.2% for the first nine weeks of the year, although Greggs said said the figures reflected good growth by volume.

It is set to open up a further 160 sites this year with an aim to have over 3,000 bakeries across the UK. Greggs currently has over 2,300 sites nationwide and opened a record 220 sites in 2023.

In a statement, Greggs said: “Inflationary pressures are reducing and we have improved visibility costs in the coming year. There is no change to management’s expectations for 2024.”

Greggs shares were up 5% on Tuesday morning, making it one of the biggest risers on the FTSE 250. The company said it was on track to double its sales from 2021 by 2026.