An 84-Year-Old Bakery Surpasses Subway in the UK’s Market
Greggs, an 84-year-old bakery chain based in Newcastle, has achieved a significant milestone by surpassing the number of stores owned by US-based submarine sandwich chain Subway in the UK. With 2,400 stores across the country, Greggs has now outpaced Subway, which currently has 2,300 stores in the UK. The bakery chain has also opened 82 net new shops this year alone, with plans to open between 135 and 145 more by the end of the year. If successful, 2023 will be a record-breaking year for Greggs in terms of new store openings.
Greggs and Subway have long been direct rivals, often opening stores in close proximity to one another, such as petrol stations, grocery stores, and cinema halls. Interestingly, Greggs was already established as a household name in the UK when Subway first arrived in 1996. Back in 2008, Greggs had 1,368 outlets compared to Subway’s 1,020. However, Subway’s franchise-based expansion strategy allowed it to catch up to Greggs over the years.
While Subway’s growth has slowed down, Greggs continues to thrive. The bakery chain has extended store hours, introduced seasonal and vegan options, expanded take-away and delivery services, and experienced strong sales in its cakes and coffees. The value-for-money proposition of Greggs has resonated well with cost-conscious consumers, leading to its sustained growth.
Greggs’ Growth Numbers
- 144: Number of new outlets opened by Greggs as of October
- 62: Number of closed outlets as of October
- 20.8%: Increase in total sales in the past three months compared to the previous year
- 1,928: Total number of company-managed Greggs shops
- 482: Number of Greggs’ franchised units
- 500: Number of Greggs stores available on Uber Eats by the end of October
- 300: Number of stores that Greggs plans to extend hours until 9pm starting this year
Despite its growth, Greggs needs to be cautious and ensure that its ambition remains grounded. While it currently thrives during tough economic times, it remains to be seen if it can maintain its popularity when economic conditions improve and consumers have more disposable income. Nonetheless, Greggs’ well-established track record and strong business sense provide confidence in its ability to navigate challenges and continue to be one of Britain’s top-performing businesses.
In related news, Cepac, a packaging manufacturer that supplies companies like Subway, Greggs, and Costa Coffee, is facing a dispute with its employees. The company has been hit by an all-out strike by Unite union workers who are protesting against an inadequate 8% pay raise offer, coupled with longer work hours, lower overtime rates, and changes in shift patterns. Cepac has initiated redundancy consultations, placing around 61 jobs at risk. The company has faced criticism for its “fire and hire” strategy, which involves releasing employees and rehiring them on less favorable terms. This situation could potentially affect the supply of packaging for Subway and Greggs.
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