Greggs has announced an increase in the prices of select menu items starting today due to escalating costs. The bakery chain will raise the price of its two-part breakfast deal, which includes a roll and drink, from £2.95 to £3.15. Additionally, the three-part breakfast deal, with an added side like a yoghurt pot or hash browns, will now cost £4.15, up from £3.95.

Furthermore, Greggs confirmed that certain baked goods, including the empire biscuit, will see a 5p price hike. This adjustment follows the earlier increase in the price of the sausage roll to £1.30.

Roisin Currie, Greggs’ chief executive, emphasized that despite the price adjustments, the chain still provides excellent value. She also urged Labour to avoid unexpected changes in the upcoming autumn Budget, scheduled for November 26, where Chancellor Rachel Reeves will outline tax and spending plans.

Addressing the financial challenges faced by the business, Greggs cited the heightened employer National Insurance rate and the rising minimum wage as key factors driving up costs. Ms. Currie expressed the difficulty of managing a business when unforeseen costs, like the recent national insurance increase, impact operations significantly.

Looking ahead, Greggs remains optimistic, with plans for 120 net new store openings this year, slightly lower than initially projected. The company continues to expand its presence in partnerships with major supermarket chains like Tesco and Sainsbury’s, as well as relocating smaller stores for better accessibility.

Despite a slowdown in like-for-like sales growth compared to previous periods, Greggs remains confident in its value proposition, aiming to attract consumers who prioritize smart spending. Ms. Currie highlighted the shift towards mindful consumer behavior, indicating that Greggs’ affordability could appeal to cost-conscious customers seeking value in their purchases.