Greggs

From Wikipedia, the free encyclopedia
This article is about the British bakery chain. For the New Zealand coffee, desserts and condiments company, see Gregg's (New Zealand). For the fictional character on The Wire, see Kima Greggs.

Greggs plc
TypePublic
Traded as
LSE: GRG
IndustryFood (Food on the go)
FoundedNewcastle upon Tyne
1939; 82 years ago (1939)
FounderJohn Gregg
HeadquartersNewcastle upon Tyne[1]
Number of locations
2,000+ (2019)[2]
Key people
Ian Durant
(Group Chairman)
Roger Whiteside
(Chief Executive)
ProductsSausage rolls, pastries, sandwiches, cakes
RevenueDecrease £811.3 million (2020)[3]
Decrease £(7.0) million (2020)[3]
Net income
Decrease £(13.0) million (2020)[3]
Number of employees
19,000 (2020)[4]
Websitegreggs.co.uk
Historic shop front, Greggs, Brecon (2005)

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

History[]

Early history[]

Greggs was founded by John Gregg as a Tyneside bakery in 1939.[5] It opened its first shop in Gosforth, Newcastle upon Tyne in 1951.[6] When Gregg 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.[7]

Expansion[]

In May 1994, the company acquired the Bakers Oven chain of bakers' shops from Allied Bakeries.[7] In August 1999, Greggs rebranded its one hundred Braggs bakers shops as Greggs of the Midlands, and its Leeds based Thurston chain as Greggs of Yorkshire.[8]

In December 2008, Greggs announced that all of its 165 Bakers Oven branded shops would be re branded as Greggs shops so that all of the Bakers Oven shops could benefit from the Greggs national advertising campaign.[9] In 2011, the company opened its 1,500th shop in York.[10]

In January 2013, Greggs replaced its CEO Ken McMeikan with Punch Taverns CEO Roger Whiteside. McMeikan left the firm for Brake Bros.[11] In November 2009, the company announced plans for a further 600 stores.[12] 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.[13]

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.[14]

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,[15] expanding its breakfast menu to suit.[16] Part of this change meant discontinuing the sale of bread and scones in many of its stores.[17]

In August 2014, the company requested help from Google when an image of the Greggs logo, altered to include a parodic fake slogan referring to the firm's customers as "scum", was presented in Google search results as the actual company logo – falling afoul of imperfections in the "Google algorithm".[18] The firm's lighthearted social media response, which included a tweet sent to Google's official Twitter account offering doughnuts in exchange for fixing the problem, was noted as a "lesson in Twitter crisis management".[19][20]

In 2016, Greggs moved their head office from Jesmond, Newcastle upon Tyne[21] to Quorum Business Park, Longbenton, North Tyneside.[22][23] In March 2020, all shops closed in response to the COVID-19 pandemic.[24]

Coronavirus impact[]

In response to the ongoing disruption, Greggs was forced to close all stores on 24 March 2020 furloughing most of its employees. On 24 April 2020, it was decided Greggs were carrying out a controlled trial of 20 stores in Newcastle in regards to safety measures taken in response to COVID-19. This was later called off due to the amount of press coverage it was deemed dangerous and trials were carried out behind closed doors at undisclosed locations throughout the UK.[25]

After a successful trial Greggs announced it was opening 800 shops around 15 June 2020, with all the new measures in place which include perspex screens, social distancing markers and door staff. The company has also said reduced trading hours and a reduced menu will be in place until further notice. Greggs opened all shops with the new measures near the end of July 2020.[26] Then in November 2020, the company announced it would be cutting 820 jobs due to the COVID-19 pandemic that affected the company's sales.[27]

Operations[]

In 2019, the chain had over 2,000 outlets, nine regional bakeries that make products local to the area, like Scotch Pie in Scotland, and also employed 22,000 staff.[28] The company also sells some of its products – such as bakes, melts and pasties – through the supermarket chain Iceland.[29]

Delivery service and Click & Collect[]

In October 2016, Greggs announced that it would be launching a delivery service on a trial basis, with plans to implement it nationwide if the trial proved to be successful.[30] The initial trial was held in Cobalt Business Park in North Tyneside, and the next trial phase encompassed the city's other 29 Greggs stores.[31]

Greggs Drive Thru and 24-hour openings[]

In June 2017, Greggs opened their first drive thru, at Irlam Gateway Service Station in Salford.[32] Three further outlets have since opened in Ashby-de-la-Zouch, Blackburn and Newcastle.[33][34] Greggs are trialing certain drive-thru stores being open 24 hours a day.[35]

Greggs Moment Stores[]

In September 2011, Greggs opened its first Greggs Moment, a 104-seater coffee shop, in its home town of Newcastle on Northumberland Street.[36] This store was then followed by one in the nearby MetroCentre in August 2012,[37] with five outlets in operation by February 2013.[38] In August 2013, the company announced that it would discontinue its attempt to enter the coffee market, and instead focus on selling coffee from its existing stores.[39]

Products[]

Sausage rolls, pizza and pastries[]

The company's best selling product is the sausage roll, selling more than two million units weekly.[40] Greggs sell sausage rolls freshly baked in-store individually, or in a pre-baked cold pack of four for customers to heat at home.[41]

Vegan products[]

Greggs launched a vegan sausage roll in January 2019, made with vegan Quorn.[42] Greggs have a partnership with the Quorn company. Following the release of the vegan sausage roll Greggs had very strong core growth throughout the UK,[43] "paving the way for other fast food chains to add a vegan option to their menus."[44] In January 2020 it was announced that the chain would give 25,000 employees a bonus of up to £300 each (totalling £7m) after the vegan sausage roll boosted sales and profits.[45]

Also in January 2020 the chain launched a meat-free version of its steak bake.[46]

Breakfast menu[]

Greggs offer a variety of breakfast items which are served until 11 am. Bacon rolls and porridge were introduced to their stores in 2010[47] alongside continental items including croissants and pains au chocolat.[48]

Seasonal ranges[]

Greggs regularly introduces 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.[49]

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 low fat snacks such as yoghurt pots and pots of fruit, and light drinks such as lemonade and fruit juices.[50]

The first gluten free products were launched with the autumn/winter menu in 2016 and included a range of cakes, brownies and crispy rolls.[51] Their Halloween product line includes fairy buns, cakes, biscuits, lattices and gingerbread kits.[49]

Their Christmas menu includes bakes, rolls, soups, toasties, baguettes, biscuits, muffins, buns and mince pies.[52]

Sandwiches[]

Greggs produce a variety of sandwiches which are all freshly prepared in-store everyday and available to purchase hot or cold.[53]

Soup[]

Greggs' soups are part of the company's healthy eating menu.[54] 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.[49][54] 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.[55]

While a 300g portion was said to contain 5.7g of sugar, that amount of soup was found to contain 25.4g when tested: almost five times the amount declared on the package.[55] In response, Greggs said that they would "review the methodology used to determine nutritional data and would reformulate the recipe if required".[55]

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.[56] It was announced in June 2015 that the company would be discontinuing the pie from its Scottish menu as Greggs was looking to "refresh" the pastries they offered.[57]

The news of the removal of the pie angered many customers in Scotland, and campaigns soon began calling for Greggs to keep the pie.[56] A huge campaign started on social media with Scots pleading with Greggs to #savethepie.[58] A petition was started which gained nearly 2,000 supporters,[59] and the topic of the discontinuing of the pie was discussed in the Scottish parliament.[58]

Bread[]

In November 2015, Greggs decided to discontinue selling bread, with the company stating that the products were not selling as well as their sandwiches and other products.[60] The company also mentioned that bread was still being sold in a few stores and that they were now focusing on "food on the go" products as customer habits were changing.[60]

Balanced Choice pasties[]

In September 2016, in response to rising obesity levels in the United Kingdom, Greggs introduced a range of sourdough pasties which are under four hundred calories. The Balanced Choice Bakes are in Greggs' healthy Balanced Choice range.[61][62]

Marketing[]

In July 2002, American actress and model Milla Jovovich, a fan of the store and its pasties,[63] 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.[64]

Greggs Rewards[]

In February 2014, Greggs launched an electronic loyalty scheme app called "Greggs Rewards".[65]

Pasty tax[]

In March 2012, Chancellor of the Exchequer George Osborne proposed to simplify the taxing of takeaway food. In the United Kingdom, 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.[66]

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. Chairman of the company, Derek Netherton warned that such a tax would lead to "further unemployment, high street closures and reduced investment".[67] Greggs participated in a campaign to reverse this decision, which became known as the "pasty tax" or "Pasty Gate".[68]

Greggs: More Than Meats the Pie[]

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

References[]

  1. ^ "GREGGS PLC - Overview (free company information from Companies House)". Beta.companieshouse.gov.uk. Retrieved 6 June 2020.
  2. ^ "Third Quarter Trading Update" (PDF). Greggs plc. Retrieved 2 December 2019.
  3. ^ Jump up to: a b c "Preliminary Results 2020" (PDF). Greggs. Retrieved 16 March 2021.
  4. ^ "Greggs staff to get £300 bonus after 'phenomenal year'". BBC. 8 January 2020. Retrieved 1 March 2021.
  5. ^ "Takeaway market holds key to Greggs' future". The Northern Echo. 18 November 2003. Retrieved 16 February 2010.
  6. ^ "Earning a crust; How famous bakery rose from pushbike yeast deliveries Remember When a blast from the past". Entrepreneur. 19 March 2008. Retrieved 16 February 2010.
  7. ^ Jump up to: a b "history". Greggs. Archived from the original on 16 January 2010. Retrieved 16 February 2010.
  8. ^ "Greggs". Ukbusinesspark.co.uk. Archived from the original on 13 August 2010. Retrieved 16 February 2010.
  9. ^ "Chief Executive's Review and Trading Update". Greggs plc. 9 December 2008. Archived from the original on 5 May 2009. Retrieved 10 March 2009.
  10. ^ "Greggs plc interim management statement" (PDF). Greggs plc. 11 May 2011. Archived from the original (PDF) on 13 August 2011. Retrieved 24 July 2011.
  11. ^ Thomas, Nathalie (24 January 2013). "Greggs poaches Punch Taverns chief". The Telegraph. Retrieved 25 August 2016.
  12. ^ "How did Greggs conquer the High Street?". BBC News. 10 November 2009. Retrieved 10 November 2009.
  13. ^ Rankin, Jennifer (9 October 2013). "Greggs slows sales decline as it battles to win back customers". The Guardian. Retrieved 25 August 2016.
  14. ^ "Greggs CEO Roger Whiteside talks turnarounds, M&S and VR pasties". Retrieved 10 November 2016.
  15. ^ "More people are going to work on a Greggs as strong growth at breakfast time boosts sales". The Telegraph. 4 October 2016. Retrieved 10 November 2016.
  16. ^ Farrell, Sean (9 May 2016). "Salads and flat-whites boost Greggs despite high street lull". The Guardian. ISSN 0261-3077. Retrieved 10 November 2016.
  17. ^ McCrum, Kirstie (19 May 2015). "Greggs the bakers are stopping selling bread and here's why". Mirror. Retrieved 10 November 2016.
  18. ^ Cresci, Elena (19 August 2014). "Why did an offensive Greggs logo show up in Google's web search?". The Guardian. Retrieved 25 August 2016.
  19. ^ Bold, Ben (20 August 2014). "Greggs gives lesson in Twitter crisis management after fake logo debacle". Marketing Magazine. Retrieved 5 November 2015.
  20. ^ Usborne, Simon (22 August 2014). "Was Greggs' response to its logo mishap a stroke of genius?". The Independent. Retrieved 5 November 2015.
  21. ^ Ford, Coreena (20 August 2015). "Bakery giant Greggs plans cafe move in Newcastle city centre". ChronicleLive. Retrieved 23 August 2019.
  22. ^ Ford, Coreena (29 September 2015). "Bakery giant Greggs set for Quorum Business Park move with Sanderson Weatherall help". ChronicleLive. Retrieved 23 August 2019.
  23. ^ Ford, Coreena (7 September 2016). "Jobs on the way as US giant Sitel takes largest Newcastle office letting this year". ChronicleLive. Retrieved 23 August 2019.
  24. ^ Coronavirus: Greggs to close all stores to prevent spread BBC News 23 March 2020
  25. ^ "Welcome to". Greggs Employee Information. Retrieved 6 June 2020.
  26. ^ "Click and Collect". Greggs Collect. Retrieved 6 June 2020.
  27. ^ "Greggs set to cut 820 jobs as coronavirus lockdown hits bakery chain's sales". uk.finance.yahoo.com. Retrieved 14 November 2020.
  28. ^ "Greggs 2000th shop". BBC News. Retrieved 19 May 2015.
  29. ^ "Search Greggs". Iceland Groceries. Retrieved 1 December 2016.
  30. ^ "Greggs unveils new delivery service". ITV News. 19 October 2016. Retrieved 1 December 2016.
  31. ^ Ford, Coreena (18 October 2016). "Steak bake lovers rejoice! Greggs has launched a delivery service". mirror. Retrieved 1 December 2016.
  32. ^ Boult, Adam (8 June 2017). "The world's first drive-through Greggs is now open". The Telegraph. Retrieved 12 June 2017.
  33. ^ "Third drive-thru Greggs in UK to open at Euro Garages site". Lancashire Telegraph. 12 September 2018. Retrieved 5 October 2018.
  34. ^ "Greggs opens fourth drive-through in Newcastle". British Baker. Retrieved 22 September 2019.
  35. ^ Waldron, Ben (4 June 2018). "Country's second Greggs 24-hour drive-thru to open in Ashby". Derby Telegraph.
  36. ^ Dent, Karen (29 September 2011). "Greggs open first coffee shop in Newcastle". nechronicle.
  37. ^ "Greggs open coffee shop at Gateshead Metrocentre". nechronicle. 13 August 2012. Retrieved 7 June 2015.
  38. ^ "Greggs Moment headed for Midlands". bakeryinfo.co.uk. Retrieved 7 June 2015.
  39. ^ "Greggs shares hit after sales and profits fall". BBC News. 6 August 2013. Retrieved 25 August 2016.
  40. ^ 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.
  41. ^ Halliwell, James. "Greggs trials cold sausage roll four-pack". www.thegrocer.co.uk. Retrieved 8 November 2016.
  42. ^ correspondent, Rebecca Smithers Consumer affairs (2 January 2019). "Greggs launches vegan sausage roll". The Guardian. ISSN 0261-3077. Retrieved 6 January 2020 – via www.theguardian.com.
  43. ^ "Greggs: Vegan sausage roll helps boost profit forecast for Britain's biggest baker". Sky News. 11 November 2019. Retrieved 8 December 2019.
  44. ^ Blackall, Molly (6 January 2020). "Burger King's new plant-based burger is not suitable for vegans". The Guardian. ISSN 0261-3077. Retrieved 6 January 2020 – via www.theguardian.com.
  45. ^ Butler, Sarah (8 January 2020). "Greggs to pay workers £7m bonus after vegan sausage roll success". The Guardian. ISSN 0261-3077. Retrieved 8 January 2020 – via www.theguardian.com.
  46. ^ correspondent, Rebecca Smithers Consumer affairs (2 January 2020). "Greggs launches meatless steak bake to beef up its vegan range". The Guardian. ISSN 0261-3077. Retrieved 6 January 2020 – via www.theguardian.com.
  47. ^ Wilson, Amy (7 October 2010). "Greggs puts porridge on the breakfast menu as bacon butties boost sales". The Telegraph. Retrieved 22 November 2016.
  48. ^ Dent, Karen (6 October 2010). "Greggs add croissants to their breakfast menu". Chronicle Live. Retrieved 22 November 2016.
  49. ^ Jump up to: a b c Farrell, Sean (6 October 2015). "New Greggs menu and smarter shops boost sales ahead of forecast". The Guardian. Retrieved 15 November 2016.
  50. ^ Morgan, Georgia (26 April 2016). "Greggs reveals new 400 calorie or less healthy menu options including sandwiches, soups and salads". Liverpool Echo. Retrieved 1 December 2016.
  51. ^ "Greggs announce plans to launch gluten-free products". Free-From Heaven. 2 August 2016. Retrieved 1 December 2016.
  52. ^ Scott, Ellen (8 November 2016). "Greggs' Christmas menu is here and it's as magical as always". Metro. Retrieved 15 November 2016.
  53. ^ Akbar, Javaria (11 November 2014). "What I Learned About Sandwiches From Working at Greggs". VICE. Retrieved 22 November 2016.
  54. ^ Jump up to: a b Rodger, James (27 April 2016). "Revealed: Greggs unveils new 400 calorie or less menu". coventrytelegraph. Retrieved 1 December 2016.
  55. ^ Jump up to: a b c Hinde, Natasha (29 November 2016). "'Tricks Of The Restaurant Trade' Makes A Shocking Discovery About Greggs Tomato Soup". The Huffington Post. Retrieved 1 December 2016.
  56. ^ Jump up to: a b Laing, Peter (24 June 2015). "Greggs told by angry Scots – Give us back our macaroni pies". Deadline News. Retrieved 15 November 2016.
  57. ^ "Lukewarm pasta fans outraged after Greggs axe Macaroni Pies". STV Glasgow. Retrieved 15 November 2016.
  58. ^ Jump up to: a b Smolen, Bronya. "Macaroni pies dilemma reaches parliament". British Baker. Retrieved 15 November 2016.
  59. ^ "What is it with macaroni pies?". BBC News. 25 June 2015. Retrieved 15 November 2016.
  60. ^ Jump up to: a b "Greggs: The baker that is stopping selling loaves". BBC News. 19 May 2015. Retrieved 15 November 2016.
  61. ^ "Balanced Choice". Greggs. Retrieved 24 August 2017.
  62. ^ Smithers, Rebecca (10 September 2016). "Greggs joins trend for healthy eating with sourdough pasties". The Guardian. Retrieved 10 November 2016.
  63. ^ "Milla munches Geordie fare". BBC News. 9 July 2002. Retrieved 16 April 2007.
  64. ^ "Slav to love". Daily Telegraph. 8 April 2007. Archived from the original on 7 May 2007. Retrieved 16 April 2007.
  65. ^ "Greggs launches mobile payment app with built in loyalty – Eagle Eye". Eagle Eye. 26 February 2014. Retrieved 22 November 2016.
  66. ^ "Businesses and charging VAT – GOV.UK". www.gov.uk. Retrieved 10 November 2016.
  67. ^ Neate, Rupert (16 May 2012). "Greggs warns pasty tax could hit sales and profits". The Guardian. ISSN 0261-3077. Retrieved 10 November 2016.
  68. ^ VAT Notice 701/14 Catering and take-away food. HM Revenue & Customs. October 2011.
  69. ^ Edwards, Samantha (19 April 2013). "Greggs TV series airs in April". British Baker. Retrieved 25 August 2016.
  70. ^ Jeffery, Morgan (29 May 2013). "'Revolution', 'Arrow' revealed as Sky's most-watched shows in April". Digital Spy. Retrieved 25 August 2016.

External links[]

Retrieved from ""