Greggs

This article is about the British bakery chain. For the New Zealand coffee, desserts and condiments company, see Gregg's (New Zealand).
Greggs plc
Public (LSE: GRG)
Industry Food (Bakery Group)
Founded 1939 (1939)
Founder John Gregg
Headquarters Jesmond, Newcastle upon Tyne, United Kingdom
Key people
 Ian Durant
(Group Chairman)
Roger Whiteside
(Chief Executive)
Products Sandwiches, pies and pastries; baked goods
Revenue £835.7 million (2015)[1]
£73.1 million (2015)[1]
£57.6 million (2015)[1]
Number of employees
 19,847 (2015)[1]
Website www.greggs.co.uk
Greggs, Carmarthen, during snowfall (2009)
Greggs, Waterlooville (2008)
Historic shop front, Greggs, Brecon (2005)

Greggs plc (LSE: GRG) is the largest bakery chain in the United Kingdom. It specialises in savoury products such as pasties, sausage rolls and sandwiches and sweet items including doughnuts and vanilla slices. It is headquartered in Newcastle upon Tyne. It is listed on the London Stock Exchange, and is a constituent of the FTSE 250 Index.

The first Greggs was opened in 1951. Originally growing regionally from its North East base, Greggs began to acquire other regional bakery chains across the rest of the country from the 1970s onwards. By the 1990s, it was the largest bakery chain in the country after acquiring its major rival, Bakers Oven, in 1994. In 2016 the chain had 1,743 outlets, including 143 franchised outlets.[2]

History

Greggs was founded by John Gregg as a Tyneside bakery in 1939.[3] It opened its first shop in Gosforth, Newcastle upon Tyne in 1951.[4]

When John died in 1964, the bakery was taken over by his son, Ian, assisted by his brother, Colin. Major expansion began soon after, including the acquisitions of other bakeries such as Glasgow-based Rutherglen in 1972, Leeds-based Thurston's in 1974, Broomfields the Bakers, London, Bowketts the Bakers in Kent, Tooks the Bakers (East Anglia) and Price's (Manchester) in 1976.[5]

In May 1994, the company acquired the Bakers Oven chain of bakers' shops from Allied Bakeries.[5] In August 1999, Greggs rebranded its 100 Braggs bakers shops as Greggs of the Midlands, and its Leeds based Thurston chain as Greggs of Yorkshire.[6]

In December 2008, Greggs announced that all of its 165 Bakers Oven branded shops would be re branded into the Greggs brand so that all the shops could benefit from the Greggs national advertising campaign.[7] In 2011, the company opened its 1,500th shop in York.[8] In 2012, the company began selling frozen pasties through supermarket chain Iceland. In January 2013, Greggs replaced its CEO Ken McMeikan with Punch Taverns CEO Roger Whiteside. McMeikan left the firm for Brake Bros.[9]

In November 2009, when it had around 1400 stores (more than fast food chain McDonalds), the company announced plans for a further 600.[10] In 2013, however, in the face of declining sales. Greggs stated that they were no longer intending to increase their number of stores. They aimed to refit 215 stores (about 12% of their estate) by the end of the year, as well as introducing new products, such as pizza.[11]

In 2013 Greggs began to transition out of the bakery market with the reasoning that it couldn't compete with supermarkets on that front. Instead, the company switched to focusing solely on the "food-on-the-go" market after discovering that 80% of its business was with that market.[12] Part of this was having many of its stores open earlier and close later, in order to target those going to and coming back from work[13] - expanding its breakfast menu to suit.[14] Part of this change meant discontinuing many of its traditional baking practices, such as the sale of bread in many of its stores.[15] This includes ending its decades-old practice of selling scones.[16]

In August 2014, the company complained to Google when an "offensive" satirical parody of the Greggs logo was presented in search results as the actual company logo – falling afoul of imperfections in the "Google algorithm".[17] The firm's lighthearted social media response was noted as a "lesson in Twitter crisis management".[18][19]

Operations

The company has grown steadily over the years, and now has over 1,600 outlets, with many town and city centres having several stores. In May 2015 the chain had 1671 outlets, 9 regional bakeries and employed 20,000 staff.[20] By March 2016, the number of outlets had grown to 1698.[21]

Greggs Moment

In September 2011, Greggs opened its first Greggs Moment, a 104-seater coffee shop, in its home town of Newcastle. It was located on Northumberland Street.[22] This store was shortly followed by one in the nearby MetroCentre in 2012,[23] and the Hill Street Shopping Centre, Middlesbrough. Five outlets had been opened by February 2013.[24]

In 2013, the company announced that this trial of entering the coffee market would be discontinued. Instead, there would be a focus on selling coffee from their existing stores.[25]

Delivery Service

In 2016, Greggs announced that they would be launching a delivery service on a trial basis, with plans to implement it nationwide if the trial proved to be successful.[26]

The initial trial was held in Cobalt Business Park in Greggs’ home city of Newcastle, with the next trial phase set to encompass the city’s other 29 Greggs stores.[27] If this is successful, then Greggs have said that the next trials will be held in London and Manchester.[26] A minimum spend of £25 is currently required for the delivery service, as it is intended for workers in commercial areas, and a limited number of items from the Greggs menu are available for delivery at present.[27]

Products

Sausage roll

The sausage roll is the company’s bestselling product, selling more than 2 million units weekly.[28] The sausage roll is a pastry snack, made with sheets of puff pastry wrapped around seasoned sausage meat.[29]

Greggs sell the sausage rolls freshly baked in store individually or in a pre-baked cold pack of 4 for customers to heat at home.[30] The sausage rolls are also available for purchase at the supermarket chain Iceland, where they can be bought frozen to be cooked at home.[31][32]

Sourdough pasties

An example of Greggs point-of-sale display

Attempting to expand their healthy product range in response to rising obesity levels in the UK, Greggs introduced two sourdough pasties in 2016. Instead of using the standard puff-pastry, the pasties use a crunchier sourdough shortcrust pastry which are available with a filling of either chicken katsu or Bombay potato.[33] The company markets their pastries with the idea that they contain fewer than 300 calories and 9 grams of fat which is much less than other parts of their hot food range.[34] On the Food Standards Agency 'traffic light' health rating system the two sourdough pasties score green and amber, indicating that they are healthier than many of Greggs other products which often score red.[33]

Greggs sandwiches
An example of the sandwich display at Greggs

Seasonal ranges

Greggs regularly introduce seasonal menus which include new product lines. In 2015, they began offering chicken curry soup and peri peri chicken flatbread as part of an autumn line.[35]

In May 2016, the company launched a range branded as ‘Balanced Choice’ which aims to offer healthy food options all under 400 calories. This line offers a variety of pasta dishes, sandwiches, salads and soups and includes both meat-free products and products containing meat. The range also includes ‘healthy snacks’ such as yoghurt pots and pots of fruit, and light drinks such as lemonade and fruit juices.[36]

In October 2016, Greggs launched a new autumn menu featuring a line of burritos which includes a pulled beef burrito, a pulled chicken burrito and a vegetarian offering containing onion bhajis.[37] and their autumn/winter menu introduced a range of new burritos and gluten-free sweets.[38] These updates were accompanied by a ‘revamp’ of the company’s snack range, with the introduction of packets of nuts and fruits and a change to own-label crisps.[39]

Following the success of their previous health-conscious offerings, Greggs have also begun introducing a range of gluten-free products.[39] The first of these were launched with the autumn/winter menu for 2016 and included a range of cakes and other sweet products such as brownies and crispy rolls.[40]

Greggs also offer ranges of items themed around annual festivities. Their Halloween product line includes sweet products such as spooky ring buns, monster mallows, bat biscuits and toffee apple lattices.[35][41] Their Christmas menu includes items such as the 'Festive Bake', savoury products featuring turkey, mince pies and confectionery with festive flavours and decorations.[42]

The Festive Bake, a pastry containing chicken and bacon with stuffing and cranberry sauce,[42] is a cult favourite among customers; Greggs claimed that people begin inquiring about it as early as July, despite it being a Christmas-themed item.[43] A marketing campaign in 2016 saw the company launch an instant messaging group on WhatsApp for fans of the Festive Bake where they could discuss the bakes and receive access to exclusive content and free gifts. A limited amount of places was available in the group; customers could use the app to register their interest with Greggs who would then pick people to join.[43]

Sandwiches

Greggs sell a variety of sandwiches, which are available to purchase hot or cold. The sandwiches are made fresh in-store every day by staff who make one sandwich every minute.[44] The sandwiches come with a variety of fillers including tuna, ham, cheese, chicken, salads and spreads such as mayonnaise.[44]

Breakfast menu

Greggs offer a growing variety of breakfast items, served until 11am.[45] Bacon rolls and porridge were introduced to their stores in 2010[46] alongside continental items including croissants and pain au chocolat.[47] In 2016, the company said that their breakfast menu was their fastest-growing product line and announced plans to expand their coffee menu as a result with the addition of flat whites and an 'improved mocha'.[48]

The company also offers a 'breakfast meal deal' where customers can purchase a breakfast roll and hot drink together for £2.[49]

Soup

Greggs' soups are part of the company's healthy eating menu.[50] The soups are seasonal - the different types served throughout the year including chicken curry soup, spiced beef and rice soup, and cream of tomato soup.[35][50]

In Channel 4’s ‘Tricks Of The Restaurant Trade’ it was discovered that Greggs' cream of tomato soup contained much more sugar than was disclosed in its nutritional information.[51] While a 300g portion is said to have 5.7g of sugar, when tested the same amount came back with 25.4g: almost five times the amount on the package.[51] Greggs, in response, said that they would "review the methodology used to determine nutritional data and would reformulate the recipe if required".[51]

Pasties/Bakes

Greggs offer a range of pasties and bakes which are available to purchase in-store hot and some are available to purchase in a cold multi-pack to be re-heated at home.[52]

Their bakes consist of a puff pastry parcel filled with a variety of fillings such as streak meat, chicken pieces, sausage meat, cheese, onion and beans.[52]

Greggs also sell some of their pasties such as their Steak Bakes, Chicken Bakes and Cheese and Onion Pasties through supermarket chain Iceland.[53]

Discontinued products

Macaroni pie

Greggs previously sold a macaroni pie, which was a water crust pastry case filled with macaroni pasta and a cream cheese sauce.[54] It was sold for £1.50 in Scottish Greggs stores and was 262 calories per pie, one of Greggs less calorific products.[55]

It was announced in 2015 that the company would be discontinuing the pie from its Scottish menu as Greggs was looking to “refresh” the pastries they offered.[56]

The news of the removal of the pie angered many customers in Scotland, and campaigns soon began calling for Greggs to keep the pie.[54] A huge campaign started on social media with Scots pleading Greggs to #savethepie.[57] A petition was started which gained nearly 2,000 supporters [58] and the topic of the discontinuing of the pie was discussed in the Scottish parliament.[57]

The campaign was not successful and the pie was permanently removed from Greggs shelves in June 2015.[55]

Bread

In 2015, Greggs decided to discontinue bread from their shelves. This was a surprising discontinuation as bread was the first product Greggs sold from when company founder John Gregg delivered yeast on his bicycle in the 1950s.[59] The official Twitter account of Greggs stated that the products weren’t selling as well as their sandwiches, and other products.[60] They also added that bread is still being sold in some stores, although, only very few of them. The company says that they are now focusing on “food-on-the-go” products as customer habits are changing.[60]

Marketing

In July 2002, actress and model Milla Jovovich, a fan of the store and its pasties,[61] said that she would be willing to become the "face of Greggs", in a new marketing campaign if the firm approached her. However, no such approach was made.[62]

Greggs Rewards

In February 2014, Greggs has launched the first completely electronic loyalty scheme launched by a UK food-on-the-go retailer, called “Greggs Rewards”.[63] Customers can pay via cash, card or the new app, by connecting their card or PayPal account to it.[63]

Pasty tax

In March 2012, Chancellor of the Exchequer, George Osborne proposed to simplify the taxing of takeaway food. In the UK, most food intended to be cooked and eaten at home is zero-rated, meaning that businesses do not have to charge their customers the standard VAT on those products.[64] Hot fast food, however, must charge 20% VAT. An exception to this rule can be made if it can be argued that a product was not intended to be served hot. Much of Greggs food falls under this exception, with the food being left to cool on a shelf after preparation rather than being kept hot or reheated upon purchase by customers.[65]

With the pasty tax, any food (besides freshly baked bread) which is sold while above room temperature would be subject to the 20% VAT charge with no exception for intended serving temperature. This proposal was controversial as it would have raised the price of many Greggs products. Chairman of the company, Derek Netherton warned that such a tax would lead to "further unemployment, high street closures and reduced investment".[66] Greggs participated in a campaign to reverse this decision, which became known as the "pasty tax" or "Pasty Gate".[67]

Greggs: More Than Meats the Pie

An eight-part documentary series, called Greggs: More Than Meats The Pie,[68] which goes behind the scenes of the bakery and all its areas, was broadcast on Sky1 and Sky1 HD in 2013. The first episode achieved in excess of over 740,000 viewers, with all ratings across Sky1, Sky1+1 and Sky2 factored in.[69] Sky revealed the documentary programme was Sky1's number one original show in April, with a final total of 1.27 million viewers.[70]

References

  1. 1 2 3 4 "Annual Report 2015" (PDF). Greggs. Retrieved 9 April 2016.
  2. ↑ "Greggs sales bolstered by lower-calorie food". The Guardian. 4 October 2016. Retrieved 15 November 2016.
  3. ↑ "Takeaway market holds key to Greggs' future". The Northern Echo. 18 November 2003. Retrieved 16 February 2010.
  4. ↑ "Earning a crust; How famous bakery rose from pushbike yeast deliveries Remember When a blast from the past. (News)". Entrepreneur.com. 19 March 2008. Retrieved 16 February 2010.
  5. 1 2 "history". Greggs. Archived from the original on 16 January 2010. Retrieved 16 February 2010.
  6. ↑ "Greggs". Ukbusinesspark.co.uk. Retrieved 16 February 2010.
  7. ↑ "Chief Executive's Review and Trading Update". Greggs plc. 9 December 2008. Retrieved 10 March 2009.
  8. ↑ "Greggs plc interim management statement" (PDF). Greggs plc. 11 May 2011. Retrieved 24 July 2011.
  9. ↑ Thomas, Nathalie (2013-01-24). "Greggs poaches Punch Taverns chief". Telegraph. Retrieved 2016-08-25.
  10. ↑ "How did Greggs conquer the High Street?". BBC News. 10 November 2009. Retrieved 10 November 2009.
  11. ↑ Jennifer Rankin (2013-10-09). "Greggs slows sales decline as it battles to win back customers | Business". The Guardian. Retrieved 2016-08-25.
  12. ↑ "Greggs CEO Roger Whiteside talks turnarounds, M&S and VR pasties". Retrieved 2016-11-10.
  13. ↑ "More people are going to work on a Greggs as strong growth at breakfast time boosts sales". The Telegraph. Retrieved 2016-11-10.
  14. ↑ Farrell, Sean (2016-05-09). "Salads and flat-whites boost Greggs despite high street lull". The Guardian. ISSN 0261-3077. Retrieved 2016-11-10.
  15. ↑ McCrum, Kirstie (2015-05-19). "Greggs the bakers are stopping selling bread and here's why". mirror. Retrieved 2016-11-10.
  16. ↑ "Greggs customers are furious that bakery chain stops selling scones". Mail Online. Retrieved 2016-11-10.
  17. ↑ Elena Cresci (2014-08-19). "Why did an offensive Greggs logo show up in Google's web search? | Technology". The Guardian. Retrieved 2016-08-25.
  18. ↑ Bold, Ben (20 August 2014). "Greggs gives lesson in Twitter crisis management after fake logo debacle". Marketing Magazine. Retrieved 5 November 2015.
  19. ↑ Usborne, Simon (22 August 2014). "Was Greggs' response to its logo mishap a stroke of genius?". The Independent. Retrieved 5 November 2015.
  20. ↑ "Greggs: The baker that is stopping selling loaves". BBC News. Retrieved 19 May 2015.
  21. ↑ Ed Cumming (2016-03-05). "How Greggs conquered Britain: 'Nobody can quite believe how well it has done' | Business". The Guardian. Retrieved 2016-03-11.
  22. ↑ Karen Dent (29 September 2011). "Greggs open first coffee shop in Newcastle". nechronicle.
  23. ↑ nechronicle Administrator (13 August 2012). "Greggs open coffee shop at Gateshead Metrocentre". nechronicle. Retrieved 7 June 2015.
  24. ↑ "Greggs Moment headed for Midlands". bakeryinfo.co.uk. Retrieved 7 June 2015.
  25. ↑ "Greggs shares hit after sales and profits fall – BBC News". Bbc.co.uk. 2013-08-06. Retrieved 2016-08-25.
  26. 1 2 "Greggs unveils new delivery service". ITV News. Retrieved 2016-12-01.
  27. 1 2 Ford, Coreena (2016-10-18). "Steak bake lovers rejoice! Greggs has launched a delivery service". mirror. Retrieved 2016-12-01.
  28. ↑ Armstrong, Ashley (2 August 2016). "Greggs: We might be going gluten-free but nothing will beat our sausage rolls". The Telegraph. Retrieved 15 November 2016.
  29. ↑ "Greggs Sausage Roll". Greggs. Retrieved 8 November 2016.
  30. ↑ Halliwell, James. "Greggs trials cold sausage roll four-pack". www.thegrocer.co.uk. Retrieved 2016-11-08.
  31. ↑ "Greggs 4 Sausage Rolls 427g". Iceland Groceries. Retrieved 2016-11-08.
  32. ↑ "Greggs takes sausage rolls to Iceland". The Independent. 2011-07-05. Retrieved 2016-11-10.
  33. 1 2 Smithers, Rebecca (2016-09-10). "Greggs joins trend for healthy eating with sourdough pasties". The Guardian. ISSN 0261-3077. Retrieved 2016-11-10.
  34. ↑ Young, Graham (2016-09-21). "Greggs chicken katsu sourdough pasty put to the taste test". birminghammail. Retrieved 2016-11-10.
  35. 1 2 3 "New Greggs menu and smarter shops boost sales ahead of forecast". The Guardian. 6 October 2015. Retrieved 15 November 2016.
  36. ↑ Morgan, Georgia (2016-04-26). "Greggs reveals new 400 calorie or less healthy menu options including sandwiches, soups and salads". Liverpool Echo. Retrieved 2016-12-01.
  37. ↑ Cooke, Alice (28 April 2016). "Greggs to roll out Balanced Choice range - British Baker". Bakeryinfo.co.uk. Retrieved 15 November 2016.
  38. ↑ "Greggs is now selling a range of burritos in Autumn menu | Metro News". Metro.co.uk. 2016-10-05. Retrieved 2016-11-16.
  39. 1 2 Chesters, Laura (3 August 2016). "Now even Greggs goes gluten-free with range of cakes and sweet treats: Chain hoping to replicate the success of its healthier options including salads". Daily Mail. Retrieved 15 November 2016.
  40. ↑ "Greggs announce plans to launch gluten-free products". Free-From Heaven. 2016-08-02. Retrieved 2016-12-01.
  41. ↑ Linge, Nadine (16 October 2010). "Greggs: How the nation's favourite baker will cope with the Halloween rush". Daily Star. Retrieved 15 November 2016.
  42. 1 2 Scott, Ellen (8 November 2016). "Greggs' Christmas menu is here and it's as magical as always". Metro.co.uk. Retrieved 15 November 2016.
  43. 1 2 Morley, Nicole (2016-11-02). "Greggs launch VIP WhatsApp group for hardcore pasty fans who want freebies". Metro.co.uk. Retrieved 2016-12-01.
  44. 1 2 "What I Learned About Sandwiches From Working at Greggs | VICE | United Kingdom". VICE. 2014-11-11. Retrieved 2016-11-22.
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  46. ↑ Wilson, Amy (7 October 2010). "Greggs puts porridge on the breakfast menu as bacon butties boost sales". The Telegraph. Retrieved 22 November 2016.
  47. ↑ Dent, Karen (6 October 2010). "Greggs add croissants to their breakfast menu". Chronicle Live. Retrieved 22 November 2016.
  48. ↑ Sheffield, Hazel (12 January 2016). "Greggs plans to sell flat whites after take-out breakfast sales soar". The Independent. Retrieved 22 November 2016.
  49. ↑ Marlow, Ben (4 October 2016). "Greggs is on a roll and should try its pasties in Provence". The Telegraph. Retrieved 22 November 2016.
  50. 1 2 Rodger, James (2016-04-27). "Revealed: Greggs unveils new 400 calorie or less menu". coventrytelegraph. Retrieved 2016-12-01.
  51. 1 2 3 "'Tricks Of The Restaurant Trade' Makes A Shocking Discovery About Greggs Tomato Soup". The Huffington Post. 2016-11-29. Retrieved 2016-12-01.
  52. 1 2 Metro.co.uk, Duncan Lindsay for (2016-01-17). "FINALLY. Greggs pasties ranked from worst to best - with controversial results". Metro. Retrieved 2016-12-01.
  53. ↑ "Greggs 2 Steak Bakes 280g". Iceland Groceries. Retrieved 2016-12-01.
  54. 1 2 Laing, Peter (2015-06-24). "Greggs told by angry Scots - Give us back our macaroni pies". Deadline News. Retrieved 2016-11-15.
  55. 1 2 Wilkie, Stephen (2015-06-25). "Fury as Greggs says bye-bye macaroni pie". Express.co.uk. Retrieved 2016-11-15.
  56. ↑ "Lukewarm pasta fans outraged after Greggs axe Macaroni Pies". STV Glasgow. Retrieved 2016-11-15.
  57. 1 2 "Macaroni pies dilemma reaches parliament - British Baker". bakeryinfo.co.uk. Retrieved 2016-11-15.
  58. ↑ "What is it with macaroni pies?". BBC News. 2015-06-25. Retrieved 2016-11-15.
  59. ↑ Chronicle, Evening (2008-03-19). "How Gregg's bakery rose from pushbike yeast deliveries". nechronicle. Retrieved 2016-11-15.
  60. 1 2 "Greggs: The baker that is stopping selling loaves". BBC News. 2015-05-19. Retrieved 2016-11-15.
  61. ↑ "Milla munches Geordie fare". BBC News. 9 July 2002. Retrieved 16 April 2007.
  62. ↑ "Slav to love". Daily Telegraph. 8 April 2007. Retrieved 16 April 2007.
  63. 1 2 "Greggs launches mobile payment app with built in loyalty - Eagle Eye". Eagle Eye. 2014-02-26. Retrieved 2016-11-22.
  64. ↑ "Businesses and charging VAT - GOV.UK". www.gov.uk. Retrieved 2016-11-10.
  65. ↑ "The return of the pasty tax: Greggs to put VAT on hot snacks after complaints about food being cooled down to avoid levy". Mail Online. Retrieved 2016-11-10.
  66. ↑ Neate, Rupert (2012-05-16). "Greggs warns pasty tax could hit sales and profits". The Guardian. ISSN 0261-3077. Retrieved 2016-11-10.
  67. ↑ VAT Notice 701/14 Catering and take-away food. HM Revenue & Customs. October 2011.
  68. ↑ "Greggs TV series airs in April – British Baker". Bakeryinfo.co.uk. 2013-04-19. Retrieved 2016-08-25.
  69. ↑ "BARB". barb.co.uk.
  70. ↑ Jeffery, Morgan (2013-05-29). "'Revolution', 'Arrow' revealed as Sky's most-watched shows in April". Digitalspy.co.uk. Retrieved 2016-08-25.
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