Greggs adds Sandwiches and Seating to the Menu

Posted on 17 September, 2014 by Kirsten Kennedy

As consumer confidence returns, retailers are more able to capitalise upon an increase in revenue by investing improvements to their properties. This has seen bakery chain Greggs add healthy eating options to its menu, as well as installing seating in a large number of its premises as a means of attracting lunchtime diners.

italian ciabatta panini sandwich with chicken and tomato

In part, the investment programme has been necessary in order to fight back against the growing number of coffee shops eating into their market. Brands such as Costa and Starbucks, which sell food as well as coffee, have become highly attractive to consumers seeking quality along with low prices, meaning that Greggs has had to examine alternative options alongside its traditional “sausage rolls and pastries” offering.

As a result, the bakery chain introduced 15 low calorie sandwiches to its range, including a Cajun chicken in flatbread option which has proven immensely popular, which now generate sales of around £1 million per week on average. In addition, Greggs stores now offer customers a “superior” coffee option as a means of edging in on the early morning commuter market.

It appears that this strategy has begun to reap rewards, with Greggs revealing that the resulting sales lift annual profits “materially ahead of our previous expectation.”

Chief executive Roger Whiteside says; “This strong performance reflects a positive response from consumers to new product initiatives, improved service, better value and our investment in shop refurbishments alongside more favourable trading conditions.

“In particular our new sandwich range with increased focus on our balanced choice options has been selling well.

“Upgrades to our coffee blend and to some of our core lines have also driven increased sales.”

Of course, although the new healthy menu has certainly elevated sales, customers remain enamoured with the sausage rolls and pastries cooked within stores, which presently account for around a third of Greggs’ total sales. In fact, sausage roll sales generate around £100 million per annum.

Altogether, Greggs remains poised to improve significantly on the past year, with like for like sales climbing by 5.4 per cent in the 11 weeks to the 13th of September. This is a huge leap from the 1 per cent drop during the same period in 2013, and indicates that consistent investment into both its commercial property portfolio and its in-store range is required to ensure upward momentum is maintained.

Shore Capital analyst Clive Black agrees, saying; “From our own visits we have seen consistently better store standards from Greggs, a steady improvement in the ranges and stores more proactively selling product.”




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