Brits Go Crazy for Greggs’ Bacon and Sausage Buns: The UK’s Budget Bakery Chain Posts Record-Breaking Performance
Forget about the Egg McMuffin. The buzz in the United Kingdom is all about the bacon and sausage buns from Greggs, an 85-year-old budget bakery chain that recently reported its best-performing year to date. The company, which took a massive 19.6% share of the food-to-go breakfast market in the UK last year and garnered an impressive 8.2% of the overall takeaway food market, has seen its profits surge beyond expectations.
Greggs revealed on Tuesday that it had achieved a pre-tax profit increase of over 13% last year, reaching an all-time high of almost £168 million ($213 million). The company’s expansion strategy is also gaining momentum, with 2,500 stores across the UK at the end of 2023 – a significant leap from McDonald’s 1,450 outlets in the UK and Ireland. Greggs plans to add as many as 160 new stores this year alone.
The company’s beginnings can be traced back to a family-owned business delivering bread and other baked goods to mining communities in Newcastle. With cost-conscious consumers drawn to its stores since its inception, Greggs has forged several strategic partnerships and navigated the cost-of-living crisis. As a result, the chain’s popularity has reached unprecedented levels.
Greggs’ breakfast meal deal, which consists of a sausage, bacon, or omelette-filled bun and a drink, starts at £2.85 ($3.62). This affordable offering has contributed significantly to the company’s success, particularly among customers looking for a quick and cost-effective meal.
Greggs aims to double its sales by 2026, with sales reaching a record £1.8 billion ($2.3 billion) last year – an impressive increase from £1.2 billion ($1.5 billion) in 2021. The company’s CEO, Roisin Currie, shared this optimistic outlook in a statement on Tuesday.
Matt Britzman, an equity analyst at Hargreaves Lansdown, explained in a note why Greggs continues to thrive: “Greggs is far more than just a treat, and its value offering puts it in a sweet spot with consumers still battling higher living costs. Maintaining that price point is key, and, with cost inflation easing, Greggs is making sure customers feel the benefit too.”
The chain’s success can also be attributed to its playful marketing strategies designed to broaden its customer base. In 2022, Greggs launched its first clothing line in collaboration with Primark, selling a variety of items such as bucket hats, t-shirts, leggings, and more, all emblazoned with the iconic blue-and-yellow logo.
In December 2023, Greggs opened a pop-up restaurant in Fenwick, an upscale department store in Newcastle, offering its popular sausage rolls and Steak Bakes beneath silver cloches. The chain also introduced its unique take on eggs benedict – Greggs Benedict.
Despite its recent successes, the main appeal of Greggs remains its no-frills convenience. Alex Morton, a recruiter from London, shared her fondness for the chain: “Greggs is a national institution… and makes me feel nostalgic. These days, the main appeal is how quick and convenient it is. If I’m on the go, I grab a Sausage, Bean, and Cheese Melt.”
