Two pounds of every £100 spent in UK is now going to high street bakers Greggs, its latest trading update shows.
The popular bakery chain announced a 27 per cent hike in annual profits earlier this month and handed around 25,000 workers a share of £17.6 million in bonuses.
It comes after Greggs delivered a bumper pre-tax profit of £188.3 million for 2023, up from £148.3 million the previous year after like-for-like sales in company-managed shops jumped 13.7 per cent.
The chain of quick-service bakeries now holds the top spot in the UK food-to-go breakfast segment, accounting for roughly one in five breakfast-to-go visits.
It also accounts for a remarkable £2 in every £100 spent in UK hospitality.
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Commenting on the results, Chloe Blais from Morningstar DBRS, said: “We expect that budget-friendly quick service restaurants (QSRs) will continue to appeal to price-conscious consumers, supporting the revenue generation of these businesses, and the less labour-intensive operations of QSRs will not be as affected by the 10 per cent National Living Wage increase, relative to their full-service counterparts.
“However, midrange restaurants, particularly cash-strapped independent operators, are expected to face significant challenges and be at risk of closing their doors if they are not able to manage their costs or access alternate sources of liquidity.”
The group’s boss, Roisin Currie, said that Greggs was “not complacent” about tough high street trading conditions.
She said: “The consumer is still under pressure in terms of their disposable income.
“We’re certainly not complacent.
“Retaining that number one for value is very important to us.”
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