/Greggs
Greggs reports robust third quarter with booming evening trading and digital sales
The brand also announced that it has teamed up with a new delivery aggregator.
Greggs reported a strong third quarter performance with total sales up 20.8% and like-for-like sales (LFL) in company-managed shops up by 14.2% because of higher evening trading and an increase in digital sales, according to a financial statement released on 4 October.
Evening trade, or sales after 4 PM represented 8.8% of company-managed restaurant sales for the 13 weeks to 30 September 2023. Online transactions through Greggs also went up by 13.1% of company-owned restaurants.
Greggs opened a total of 144 new shops and new restaurants and closed 62. The brand currently has a total of 2,410 restaurants trading as of 30 September, comprising 1,928 company-managed shops and 482 franchised units.
According to a report by the Evening Standard, Greggs has overtaken Subway as the biggest fast-food restaurant chain in the UK by restaurant numbers. Subway has roughly 2,300 restaurants.
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“We expect 2023 to be a record year for the absolute number of new shops opened as we expand into new locations and relocate shops to better premises within existing catchments. For the year as a whole, and taking into account relocations and closures, we now expect between 135 and 145 net shop openings and see a strong pipeline ahead for 2024. Our shop openings are giving customers more convenient access to Greggs, whilst our relocation activity increases our capacity in existing successful catchments,” Greggs said in a statement.
Meanwhile, Greggs also announced that it has engaged with a second delivery partner, Uber Eats after a successful trial. 500 restaurants are expected to be live by the end of October whilst further expansion is expected in 2024.
“As we had expected, the rate of cost inflation has eased as we annualise on the significant commodity-led increases experienced in 2022. At a time when customers are looking to make their money go further Greggs continues to offer exceptional value and grow market share. We have strong product and promotional plans for the fourth quarter and the extension of our delivery service will make Greggs accessible to more customers on more occasions. Whilst acknowledging the uncertainty in the economy as a whole and the very strong comparative performance of the business in the fourth quarter of 2022, the Board expects the full-year outcome to be in line with its previous expectations,” Greggs said.
