Greggs, the beloved British bakery chain famous for its savory pastries, is celebrating a record-breaking year with a £17.6 million bonus bonanza for its employees. This bumper payout comes on the heels of a staggering 27% increase in profits, reaching a total of £188 million.
The news gets even sweeter for Greggs' staff, with around 78% (25,000 out of 32,000) employees set to receive a share of the bonus pool. The size of individual bonuses will vary based on factors like tenure and hours worked. This profit-sharing scheme underscores Greggs' commitment to its workforce and comes amidst a nationwide cost-of-living crisis.
While Greggs acknowledges a 4-5% cost inflation they anticipate, the company assures customers there will be no further price hikes in 2024. This pledge aims to ease the burden on consumers grappling with rising living costs. Greggs attributes its success to a strategic menu expansion, particularly the introduction of breakfast items like bacon rolls, which has seen a significant sales increase of 35% year-on-year. Additionally, adjusting store hours to cater to early morning customers has further boosted breakfast sales.
This focus on breakfast has propelled Greggs to the top spot in the UK's takeaway breakfast market, surpassing even McDonald's. With a staggering 22% market share in breakfast takeaways, Greggs now reigns supreme in the morning meal category. However, the company acknowledges the challenge of dethroning the burger giant (which still holds a dominant 45% market share) in other meal categories.
Despite this, Greggs is riding a wave of success, boasting a record-high market share and robust sales growth of 13.7%. This positive performance is further reflected in increased dividends for shareholders and strong pre-tax profits of £168 million.
