​Greggs Under Pressure: Sausage Roll Price Hike Sparks Consumer Outrage

Greggs, the UK’s largest bakery chain, is facing scrutiny after raising the price of its iconic sausage roll to £1.30—a 5p increase—amid growing pressures from rising wages, taxes, and food costs. The increase, part of an average 4% rise on key items like coffee and doughnuts, has sparked frustration among loyal customers, with some vowing to stop purchasing if prices rise further.

Chief Executive Roisin Currie defended the decision, attributing the price adjustments to broader economic challenges. Two-thirds of Greggs employees received a 6.1% pay rise this month, alongside rising employer national insurance contributions set to take effect in April. Currie assured that no further price hikes are planned for this year, citing the company’s commitment to balancing costs while maintaining value.

“We had to look at it around inflation headwinds,” Currie said. “We came out of Covid in peak inflation territory. We still offer great value.”

Slowing Sales Growth Reflects Broader Market Challenges

Despite recording an 11.3% increase in total sales for 2024, reaching £2.01 billion, Greggs reported a slowdown in growth during the festive period. Company-managed shops posted a 5.5% annual sales growth, but this fell to just 2.5% in the final quarter, reflecting weakened consumer confidence and reduced footfall in high streets and shopping centres.

Shares in Greggs dropped 9% following the update, with analysts labelling the results as “uncharacteristically soft.” The British Retail Consortium echoed declining high street activity concerns, describing December’s performance as “drab.”

Expansion Amid Challenges

Despite economic headwinds, Greggs continues to expand aggressively. In 2024, the company opened a record 226 new outlets while closing 28 and relocating 53, resulting in 145 net openings. Plans are in place for an additional 140 to 150 new shops in 2025.

Currie noted that rising employment costs would likely add to inflationary pressures in 2025 but remained optimistic. “The fundamentals are good,” she said, highlighting how wage increases could bolster consumer spending power, despite adding to retailers’ costs.

Mixed Reactions from Customers

The price hike for Greggs’ sausage rolls, which cost as little as £1 in 2022, has drawn ire from some customers. A retired quality control inspector, Linda Johnson criticised the decision, saying, “I wouldn’t pay that – I would tell them to stick it.” Another shopper, Heather Hife, expressed disappointment, declaring she would stop buying sausage rolls if they reached £1.50.

However, Greggs remains the UK’s top choice for breakfast and continues to attract evening customers with offerings like pizza and festive bakes. Currie reassured that the brand’s “value-for-money offer” would help it weather ongoing economic pressures.

A Look Ahead

Greggs faces a challenging 2025, with rising employment costs and consumer uncertainty weighing heavily on the retail sector. Despite these hurdles, the company’s expansion plans signal confidence in its long-term growth potential.

For hospitality and fish and chip shop owners, Greggs’ situation underscores the delicate balancing act between absorbing rising costs and maintaining customer trust. As businesses across the sector grapple with inflation and cost pressures, Greggs’ approach may serve as both a cautionary tale and a source of inspiration for navigating a turbulent market.