Greggs CEO Roisin Currie said the business is ensuring it is “fit for the future” after it proposed plans to restructure its manufacturing operations, putting more than 700 jobs at risk.
Speaking with media today (30 September), Currie said: “We continue to be best in class in terms of the products that we supply and manufacture. In saying that, if we want to be efficient and competitive for the future, we will always be looking at what we do particularly well in-house.”
If the proposals, which are subject to consultation, go through, this would see Greggs relocating and consolidating some of its manufacturing activity to fewer locations, resulting in the closure of four manufacturing sites.
The changes would result in an annual saving of around £20m, with the benefit seen from 2028 and 2029 onwards.
“While they [the changes] are difficult and it is tough out in our sites today, they are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most efficient manner.
“We are a strong growing business and as we continue to invest in our future, we must keep evolving alongside changing customer expectations,” she explained.
Greggs, which today unveiled its third-quarter results for the 13 weeks to 26 September 2026, saw total sales rise by 7.7%, while like-for-like sales growth was up 3.4%.
Currie said the “improved trading performance and the continued strong cost control means the board now expects a modestly stronger profit outcome for the full year”.
“In terms of what is driving this improvement, we have had more settled weather and have continued to focus on our menu innovation by evolving our range further across multiple categories to meet consumer trends, while ensuring we stay focused, as always, on quality,” she explained.
Currie added that despite the changes outlined, the brand’s manufacturing and logistics network remains a “key strength of the business”.
Since the start of 2024, Greggs has invested more than £300m in its supply chain to support its current sites and its long-term strategy to expand its total estate to more than 3,500 shops.
So far this year, the retailer has opened 57 net new shops, bringing its total to 2,796. It expects to have opened around 100 net new shops for the year as a whole.
Consumer confidence ‘very fragile’
Despite hailing the business’ “strong growth”, Currie cautioned that consumer confidence, while “moving in the right direction”, continues to be “negative” and “very fragile”.
“We will have to continue to keep an eye on that. Where it is fragile, if we can make sure we’re providing both quality and value and service for our customers, then hopefully we continue to win in a tough market,” she said.
Looking forward to next year, Currie noted that around 50% of the business’ energy costs are hedged. However, she added: “If you look at the inflation environment that’s predicted for 2027, and if you look at how some of the energy costs will flow through to ingredients that we expect next year, then we’re expecting to enter a higher inflationary environment.
“In saying that, we don’t think it will go back to some of the peaks that we saw as we entered the Ukraine conflict a few years ago, but we think it will be higher than this year.”
In July, Currie stated there will be “no further price rises passing through in the market as long as it [inflation] stays at that current position that we’re predicting”.
Updating on this today, she maintained that the business “will do everything we can to mitigate price increases to the customer” but stated that “unfortunately, there is always an element that more price rises will get passed on to the customer”.
“What we feel confident in is that that will be as low as possible and we will maintain the number one value brand in the market on food to go.”
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