The value-focused food-to-go and coffee chain credits rising app transactions and evening footfall for its strong third quarter and forecasts further delivery sales growth following a new agreement with Uber Eats
Greggs expects 500 of its outlets to be live on Uber Eats delivery platform by the end of October 2023 | Photo credit: Greggs
Greggs has credited its digital channels and the ongoing roll-out of evening trading across its stores for driving its positive third quarter sales performance.
The UK food-to-go and coffee chain posted 21% year-on-year total sales growth for the three months ended 30 September 2023, with like-for-like sales in company-operates stores increasing 14% compared with the same period in 2022.
Greggs recorded increased customer footfall during the period, which it attributed to the ‘ongoing development of evening trading’ across its stores. Transactions post-4pm represented 9% of Greggs’ sales in company-owned stores during the quarter.
The business also highlighted strong sales from its digital channels, with purchases made via the Greggs App accounting for 13% of all company-owned store transactions during the quarter. Additionally, Greggs has commenced an 'accelerated roll-out' with Uber Eats and expects 500 of its outlets to be live on the delivery platform by the end of October 2023, ahead of a further roll-out planned in 2024. The partnership is in addition to Greggs’ existing arrangement with Just Eat.
Greggs, the second largest branded café chain in the UK after Costa Coffee, has opened 82 net new stores so far this year to reach 2,410 outlets – 1,928 of which are company-operated. The food-to-go and coffee chain forecasts it will open at least another 50 stores before the end of the year.
Outlet growth is being supported by investment in Greggs’ supply chain, with a fourth production line set to be commissioned in Newcastle upon Tyne this month and work underway to expand the logistics capacity of the chain’s Birmingham and Amesbury distribution centres.