The food-to-go and coffee chain plans to broaden its UK customer base by extending opening hours, introducing new drive-thru stores and expanding delivery
Greggs will trial 24-hour drive-thru stores this year | Photo credit: Greggs
Greggs has credited its focus on convenience and new store formats for driving its 2022 sales growth and plans to further extend opening hours, delivery and drive-thru in 2023.
Greggs achieved 23% year-on-year sales growth to reach £1.5bn ($1.8bn) for the 52 weeks ended 31 December 2022.
The value-focused chain also reported like-for-like sales across its 1,887 company-owned stores grew 18%, with group pre-tax profits climbing 2% to reach £148m ($178m) despite ‘higher than normal food cost inflation’.
The Newcastle upon Tyne-based company said it ‘reluctantly’ increased prices last year while maintaining its ‘relative value position in the market’.
Greggs opened 147 net new stores in 2022 to reach 2,328 outlets nationwide, including at Leicester Square and Liverpool Street rail station in London and at Birmingham and Liverpool airports.
The food-to-go and coffee chain said expanding to new locations and operating ‘versatile’ store formats will be key to reaching 3,000 outlets across the UK.
Greggs, which is seeking to open 150 net new stores in 2023, has also extended opening hours and delivery availability across its estate to drive sales growth. With 500 outlets now open until 8pm or later, Greggs said the evening daypart is now its strongest growing segment of the day, albeit from a low base. The chain plans to extend opening hours across a further 300 stores in 2023.
Additionally, 55% of Greggs stores now offer delivery, including at 80% of outlets with extended opening hours. Delivery, primarily operated via JustEat, currently accounts for approximately 5% of Greggs’ total sales.
Greggs will also trial 24-hour drive-thru stores this year.
“2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan. The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers. Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go. I believe we are extremely well-placed to realise the opportunity to become a significantly larger, multi-channel business,” said Roisin Currie, CEO, Greggs.
World Coffee Portal research shows Greggs opened more net new stores than any other branded coffee chain across the UK last year. It is currently the second largest chain across the country, behind Costa Coffee’s 2,700 stores.