Greggs Explained

For other uses see Greggs (disambiguation).

Greggs plc
Former Name:Greggs Bakeries Limited (19511983)[1] [2]
Type:Public
Founder:John Gregg
Num Locations:2,500[3]
Industry:Food (Food on the go)
Revenue: £1,809.6 million (2023)[4]
Operating Income: £171.7 million (2023)
Net Income: £142.5 million (2023)
Num Employees:21,500 (2023)[5]
Foundation: in Gosforth, Newcastle upon Tyne, England
Location:Newcastle upon Tyne

Greggs plc is a British bakery chain. It specialises in savoury products such as baked goods, 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. Originally a high street chain, it has since entered the convenience and drive-thru markets.

History

Early history

Greggs was founded by John Gregg as a Tyneside bakery in 1939.[6] It opened its first shop at 69/71 High Street in Gosforth, Newcastle upon Tyne in 1951.[7] When Gregg died in 1964, the bakery was taken over by his son, Ian, assisted by his brother Colin (who in 2017 was convicted and jailed for the sexual abuse of children[8]).

As Greggs of Gosforth, the first main factory on Christon Road on the Gosforth Industrial Estate opened on 30 April 1968.[9]

Major expansion took place at Greggs in the 1970s, 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.[10]

Expansion

In 1994, the company acquired the Bakers Oven chain of bakers' shops from Allied Bakeries.[10] In 1999, Greggs rebranded its one hundred Braggs shops as Greggs of the Midlands, and its Leeds-based Thurston chain as Greggs of Yorkshire.[11]

In 2008, Greggs rebranded its 165 Bakers Oven shops as Greggs so they could benefit from its national advertising campaign.[12] The company opened its 1,500th premises, in York, in 2011.[13]

In 2013, Greggs replaced its CEO Ken McMeikan with Punch Taverns CEO Roger Whiteside. McMeikan left the firm for Brake Bros.[14] [15] [16]

In 2013, Greggs began to transition out of the bakery market, reasoning that it couldn't compete with supermarkets on that front. Instead, the company switched to focusing solely on "food on the go" after discovering that 80% of its business was in that market.[17] Many of its stores now open earlier and close later, in order to target those going to and coming back from work,[18] expanding its breakfast menu,[19] and discontinuing the sale of bread and scones in many of its stores.[20]

In 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".[21] 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".[22] [23]

In 2016, Greggs moved their head office from Jesmond, Newcastle upon Tyne[24] to Quorum Business Park, Longbenton, North Tyneside.[25] [26]

In that same year, Colin Gregg was accused of preying upon children, partly using his philanthropic role within the company. Eventually, he was convicted in March 2017 on nine counts of indecent assault and was sentenced to imprisonment until at least 2030.

In 2020, all shops closed in response to the COVID-19 pandemic.[27]

In 2022, Greggs opened its largest location in a Primark store in Birmingham. A queue formed outside the shop 30 minutes before the grand opening, with some people running under the barriers as they were opened. A collaborative clothing range, "Greggs X Primark", was also released.[28]

COVID-19 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 with regard 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.[29]

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.[30] Some food items were reintroduced to the menu in September 2020.[31] In November 2020, the company announced it would be cutting 820 jobs due to the COVID-19 pandemic that affected the company's sales.[32]

Senior leadership

List of former chairmen

  1. Ian Gregg (1984–2002)[35]
  2. Derek Netherton (2002–2013)

List of former chief executives

This post was formerly known as Managing Director.

  1. John Gregg (1939–1964)[36]
  2. Ian Gregg (1964–1984)
  3. Sir Michael Darrington (1984–2008)[37]
  4. Ken McMeikan (2008–2012)[38]
  5. Roger Whiteside (2013–2022)

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.[39] Some items are only sold in particular regions.[40] The company also sells some of its products – such as bakes, melts and pasties – through the supermarket chain Iceland.[41]

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.[42] 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.[43]

Greggs Drive Thru and 24-hour openings

In June 2017, Greggs opened their first Drive-through, at Irlam Gateway Service Station in Salford.[44] Subsequent drive-through outlets opened in Ashby-de-la-Zouch,[45] Bradford,[46] Blackburn,[47] and Newcastle.[48] Greggs are trialling certain drive-thru stores being open 24 hours a day.[45]

In 2023, Greggs was involved in a dispute over operating 24 hours in Leicester Square after the location was refused an overnight license by Westminster Council.[49] Greggs appealed and was granted permission for late-night opening, but not 24 hours.[50] In July 2023 the company applied for licenses for 24 hour opening at sites in Canterbury and Liverpool.[51]

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.[52] This store was then followed by one in the nearby MetroCentre in August 2012,[53] with five outlets in operation by February 2013.[54] 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.[55]

Greggs Outlet

Greggs also has a small number of outlet shops in Northern and Central England, Scotland and two in Wales, selling unsold stock, mis-shapes and factory rejects at a discounted price, under the name Greggs Outlet.[56] [57] They were started in 1972 in Arthur's Hill, Newcastle under the name of the Greggs 'Seconds' shop.[58]

Products

Products include sausage rolls,[59] [60] vegan sausage rolls,[61] [62] [63] [64] meat-free steak bakes,[65] bacon rolls,[66] croissants, pains au chocolat,[67] sandwiches,[68] and soups.[69] [70]

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.[71]

Marketing

In July 2002, American actress and model Milla Jovovich, a fan of the store and its pasties,[72] 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.[73]

Greggs Rewards

In February 2014, Greggs launched an electronic loyalty scheme app called "Greggs Rewards".[74]

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.[75]

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".[76] Greggs participated in a campaign to reverse this decision, which became known as the "pasty tax" or "Pasty Gate".[77]

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.[78] 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.[79]

External links

Notes and References

  1. Web site: 29 December 1951 . Greggs PLC overview - Find and update company information - GOV.UK . 27 January 2024 . . en.
  2. Web site: January 2024 . Greggs Privacy Policy . 27 January 2024 . Greggs . en-GB.
  3. News: Fish . Isabella . 15 May 2024 . Greggs feels the heat from rising wage costs . en-GB . . 15 May 2024.
  4. Web site: Preliminary Results 2023. Greggs. 5 March 2024.
  5. Web site: At a glance. Greggs. 16 February 2023. 16 February 2023. https://web.archive.org/web/20230216215704/https://corporate.greggs.co.uk/at-a-glance. dead.
  6. News: Takeaway market holds key to Greggs' future. The Northern Echo. 18 November 2003. 16 February 2010.
  7. Web site: Earning a crust; How famous bakery rose from pushbike yeast deliveries Remember When a blast from the past.. Entrepreneur. 19 March 2008. 16 February 2010.
  8. News: Son of Greggs founder jailed for more than 13 years for child sex abuse . . 30 March 2017 . . London . 0261-3077 . en-GB . 19 August 2022.
  9. Newcastle Evening Chronicle Tuesday 30 April 1968, page 6
  10. Web site: history. Greggs. 16 February 2010. https://web.archive.org/web/20100116091108/http://www.greggs.co.uk/about_us/history. 16 January 2010.
  11. Web site: Greggs. Ukbusinesspark.co.uk. 16 February 2010. dead. https://web.archive.org/web/20100813112930/http://www.ukbusinesspark.co.uk/greggsaa.htm. 13 August 2010.
  12. Web site: 9 December 2008. Chief Executive's Review and Trading Update. Greggs plc. 10 March 2009. dead. https://web.archive.org/web/20090505112309/http://www.ir.greggs.plc.uk/greggsplc/html.jsp?id=128. 5 May 2009.
  13. Web site: Greggs plc interim management statement. 11 May 2011. 24 July 2011. Greggs plc. dead. https://web.archive.org/web/20110813055125/http://corporate.greggs.co.uk/assets/Uploads/Greggs-IMS-11-5-11-FINAL2.pdf. 13 August 2011. dmy-all.
  14. News: Thomas. Nathalie. Greggs poaches Punch Taverns chief. https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9823601/Greggs-poaches-Punch-Taverns-chief.html . 12 January 2022 . subscription . live. The Telegraph. 24 January 2013. 25 August 2016.
  15. News: How did Greggs conquer the High Street?. BBC News. 10 November 2009. 10 November 2009.
  16. News: Rankin. Jennifer. Greggs slows sales decline as it battles to win back customers. The Guardian. 9 October 2013. 25 August 2016.
  17. News: Greggs CEO Roger Whiteside talks turnarounds, M&S and VR pasties. 10 November 2016.
  18. News: More people are going to work on a Greggs as strong growth at breakfast time boosts sales. https://web.archive.org/web/20161005065332/http://www.telegraph.co.uk/business/2016/10/04/more-people-are-going-to-work-on-a-greggs-as-strong-growth-at-br/ . 5 October 2016 . subscription . live. The Telegraph. 4 October 2016. 10 November 2016.
  19. News: Salads and flat-whites boost Greggs despite high street lull. Farrell. Sean. 9 May 2016. The Guardian. 0261-3077. 10 November 2016.
  20. News: Greggs the bakers are stopping selling bread and here's why. McCrum. Kirstie. 19 May 2015. Mirror. 10 November 2016.
  21. News: Cresci. Elena. Why did an offensive Greggs logo show up in Google's web search?. The Guardian. 19 August 2014. 25 August 2016.
  22. Web site: Greggs gives lesson in Twitter crisis management after fake logo debacle. Marketing Magazine. 5 November 2015. Bold. Ben. 20 August 2014.
  23. News: Was Greggs' response to its logo mishap a stroke of genius?. The Independent. 5 November 2015. Usborne. Simon. 22 August 2014.
  24. Web site: Bakery giant Greggs plans cafe move in Newcastle city centre. ChronicleLive. 23 August 2019. Ford. Coreena. 20 August 2015.
  25. Web site: Bakery giant Greggs set for Quorum Business Park move with Sanderson Weatherall help. ChronicleLive. 23 August 2019. Ford. Coreena. 29 September 2015.
  26. Web site: Jobs on the way as US giant Sitel takes largest Newcastle office letting this year. ChronicleLive. 23 August 2019. Ford. Coreena. 7 September 2016.
  27. https://www.bbc.com/news/technology-51999604 Coronavirus: Greggs to close all stores to prevent spread
  28. Web site: Tasty by Greggs cafe and clothing collab with Primark announced . 24 May 2022.
  29. Web site: Welcome to. 6 June 2020. Greggs Employee Information. 6 June 2020. https://web.archive.org/web/20200606174544/https://www.greggsemployeeinformation.co.uk/. dead.
  30. Web site: Click and Collect. 6 June 2020. Greggs Collect.
  31. Web site: Greggs expands its menu following post-lockdown reductions. Anne. Bruce . 4 September 2020. British Baker. 12 October 2021.
  32. Web site: Greggs set to cut 820 jobs as coronavirus lockdown hits bakery chain's sales. 14 November 2020. uk.finance.yahoo.com.
  33. Web site: 14 September 2012 . Derek Netherton to retire as chairman of Greggs . Post Online Media.
  34. Web site: Johnston . Ian . 6 January 2022 . Greggs appoints Roisin Currie as new chief executive . FT.
  35. Web site: Graham . Natalie . 1 June 2013 . Bringing home the bread for 50 years . Financial Times.
  36. Web site: Cumming . Ed . 5 March 2016 . How Greggs conquered Britain: 'Nobody can quite believe how well it has done' . The Guardian.
  37. Web site: 10 April 2008 . Sir Michael announces retirement from Greggs . The Northern Echo.
  38. Web site: Wood . Zoe . 10 December 2012 . Greggs chief and 'pasty tax' victor quits . The Guardian.
  39. Web site: Greggs 2000th shop. 19 May 2015. BBC News.
  40. Web site: Greggs secret menu: full list of the 23 items that you can only order in some parts of the country. 26 July 2019. inews.co.uk. 12 October 2021.
  41. Web site: Search Greggs. Iceland Groceries. 1 December 2016.
  42. News: Greggs unveils new delivery service. ITV News. 19 October 2016. 1 December 2016.
  43. News: Steak bake lovers rejoice! Greggs has launched a delivery service. Ford. Coreena. 18 October 2016. mirror. 1 December 2016.
  44. News: Boult. Adam. The world's first drive-through Greggs is now open. https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/food-and-drink/news/worlds-first-drive-through-greggs-now-open/ . 12 January 2022 . subscription . live. The Telegraph. 8 June 2017. 12 June 2017.
  45. Web site: Waldron . Ben . Country's second Greggs 24-hour drive-thru to open in Ashby . . 4 June 2018.
  46. Web site: 11 May 2023 . Greggs' first drive-thru in Bradford opens today . 10 June 2023 . Yahoo News . en-GB.
  47. News: Third drive-thru Greggs in UK to open at Euro Garages site . Lancashire Telegraph . 12 September 2018 . 5 October 2018.
  48. Web site: Greggs opens fourth drive-through in Newcastle . British Baker. 22 September 2019.
  49. Web site: Greggs wins battle to sell late-night sausage rolls in London's Leicester Square . 17 May 2023 . Sky News . en.
  50. News: Sarah . Butler . 16 May 2023 . Greggs wins battle over sale of hot food in Leicester Square . en-GB . The Guardian . 16 May 2023.
  51. Web site: 4 July 2023 . A 24-Hour Greggs Is (Hopefully) Coming To Two UK Cities! . 3 November 2023 . Delish . en-GB.
  52. Web site: Dent. Karen. 29 September 2011. Greggs open first coffee shop in Newcastle. nechronicle.
  53. Web site: 13 August 2012. Greggs open coffee shop at Gateshead Metrocentre. 7 June 2015. nechronicle.
  54. Web site: Greggs Moment headed for Midlands. 7 June 2015. bakeryinfo.co.uk.
  55. News: 6 August 2013. Greggs shares hit after sales and profits fall. BBC News. 25 August 2016.
  56. Web site: Everything you need to know about Greggs Outlet Shops . greggs.co.uk . 30 August 2023.
  57. Web site: Greggs outlet shops: where are they located and what can I buy from them?. 22 October 2021. Yorkshire Evening Post.
  58. Web site: Welcome to the Underground World of Discount Greggs. 22 October 2021. www.vice.com.
  59. News: Greggs: We might be going gluten-free but nothing will beat our sausage rolls. https://web.archive.org/web/20160803222944/http://www.telegraph.co.uk/business/2016/08/02/greggs-we-might-be-going-gluten-free-but-nothing-will-beat-our-s/ . 3 August 2016 . subscription . live. Ashley. Armstrong. The Telegraph. 2 August 2016. 15 November 2016.
  60. Web site: Greggs trials cold sausage roll four-pack. Halliwell. James. www.thegrocer.co.uk. 8 November 2016.
  61. News: Rebecca . Smithers . 6 January 2020. Greggs launches vegan sausage roll. The Guardian. 2 January 2019. 0261-3077. www.theguardian.com.
  62. Web site: Greggs: Vegan sausage roll helps boost profit forecast for Britain's biggest baker . . 8 December 2019 . 11 November 2019.
  63. News: Molly. Blackall. 6 January 2020. Burger King's new plant-based burger is not suitable for vegans. The Guardian. 6 January 2020. 0261-3077. www.theguardian.com.
  64. News: Sarah. Butler. Greggs to pay workers £7m bonus after vegan sausage roll success. The Guardian. 8 January 2020. 0261-3077. www.theguardian.com. 8 January 2020.
  65. News: Rebecca . Smithers . 6 January 2020. Greggs launches meatless steak bake to beef up its vegan range. The Guardian. 2 January 2020. 0261-3077. www.theguardian.com.
  66. News: Greggs puts porridge on the breakfast menu as bacon butties boost sales. https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/newsbysector/epic/grg/8047074/Greggs-puts-porridge-on-the-breakfast-menu-as-bacon-butties-boost-sales.html . 12 January 2022 . subscription . live. 7 October 2010. 22 November 2016. Amy. Wilson. The Telegraph.
  67. Web site: Greggs add croissants to their breakfast menu. Chronicle Live. 6 October 2010. 22 November 2016. Karen. Dent.
  68. News: Javaria. Akbar. What I Learned About Sandwiches From Working at Greggs. 11 November 2014. VICE. 22 November 2016.
  69. News: Revealed: Greggs unveils new 400 calorie or less menu. Rodger. James. 27 April 2016. Coventry Telegraph. 1 December 2016.
  70. News: Farrell. Sean. New Greggs menu and smarter shops boost sales ahead of forecast. 6 October 2015. 15 November 2016. The Guardian.
  71. News: Natasha. Hinde. 'Tricks Of The Restaurant Trade' Makes A Shocking Discovery About Greggs Tomato Soup. 29 November 2016. The Huffington Post. 1 December 2016.
  72. News: 9 July 2002. Milla munches Geordie fare. BBC News. 16 April 2007.
  73. News: 8 April 2007. Slav to love. https://web.archive.org/web/20070507043242/http://www.telegraph.co.uk/fashion/main.jhtml?xml=/fashion/2007/04/08/stmilla108.xml. dead. 7 May 2007. Daily Telegraph. 16 April 2007.
  74. News: Greggs launches mobile payment app with built in loyalty – Eagle Eye. 26 February 2014. Eagle Eye. 22 November 2016.
  75. Web site: Businesses and charging VAT – GOV.UK. www.gov.uk. 10 November 2016.
  76. News: Greggs warns pasty tax could hit sales and profits. Neate. Rupert. 16 May 2012. The Guardian. 0261-3077. 10 November 2016.
  77. Book: VAT Notice 701/14 Catering and take-away food. HM Revenue & Customs. October 2011.
  78. Web site: Edwards. Samantha. Greggs TV series airs in April. British Baker. 19 April 2013. 25 August 2016.
  79. Web site: Jeffery. Morgan. 'Revolution', 'Arrow' revealed as Sky's most-watched shows in April. Digital Spy. 29 May 2013. 25 August 2016.

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