Is the beloved bakery giant Greggs past its prime? The recent slump in profits and slowing sales have sparked a heated debate about the chain's future. Once a staple of British high streets, Greggs is now facing a perfect storm of challenges that have left many wondering if its best days are behind it. But here's where it gets controversial: while some argue that rising costs and changing consumer habits spell doom for the sausage roll king, others believe Greggs is simply hitting a bump in the road—one it can navigate with smart strategies and resilience.
Greggs, the go-to spot for quick bites like sausage rolls and steak bakes, has reported a significant drop in statutory pre-tax profits, plunging 17.9% to £167.4 million for the year ending December 27th. This decline comes alongside a slowdown in sales growth at the start of the new year, painting a picture of a company under pressure. And this is the part most people miss: the challenges Greggs faces aren’t just internal—they’re deeply tied to broader economic and societal shifts.
Over the past year, the bakery chain has been squeezed by cautious consumers grappling with the rising cost of living, higher taxes, and increased labor costs. Adding to the strain is the growing popularity of weight-loss treatments, which may be nudging some customers away from indulgent pastries. These external pressures have forced Greggs to prove that the UK hasn’t reached “peak Greggs”—a term that suggests the chain’s expansion and popularity might have hit their limits.
Last year, Greggs’ CEO, Roisin Currie, pushed back against this notion, stating confidently, “I absolutely don’t believe we have reached peak Greggs.” She pointed to the company’s history of bouncing back from downturns as evidence of its resilience. But is this optimism justified? On Tuesday, Greggs expressed hope that “easing inflationary pressures” would boost consumer spending, despite looming threats like grocery inflation and geopolitical tensions in the Middle East that could push prices higher.
The company, which employs over 33,000 people, emphasized its resilience in the face of a “challenging market.” It attributed the profit decline to tough market conditions and an unusually hot summer that reduced footfall and altered consumer behavior. Currie suggested that some of these challenges might ease in 2026, with inflationary pressures potentially lifting and demand for convenient, on-the-go food remaining strong.
However, Currie also acknowledged the ongoing difficulties, telling PA Media, “We have come into 2026 planning for another challenging year. When you look at consumer confidence and disposable income, the backdrop is still tough out there.” Greggs linked the profit drop to these broader market struggles, as well as the hot weather that kept shoppers away from high streets.
Despite these headwinds, Greggs isn’t standing still. The company reported a 6.8% increase in total sales to £2.15 billion, driven by its aggressive store expansion program. In 2025 alone, Greggs opened 121 new stores, bringing its total to 2,739 locations. It plans to open around 120 more this year, with ambitions to grow to “significantly more than 3,000 UK shops over the longer term.”
Sales growth has also been supported by the expansion of its delivery service and a focus on evening trade, with nearly 75% of stores now open beyond 5 PM. More recently, like-for-like sales in managed shops grew by 1.6% over the first nine weeks of 2026, with total sales up 6.3% thanks to new store openings.
Analysts are divided on Greggs’ long-term prospects. Darren Shirley of Shore Capital was skeptical, noting there was “little to shout about as trading slows.” In contrast, Aarin Chiekrie of Hargreaves Lansdown argued that Greggs is laying the groundwork for future growth. “Menus are being adapted to changing customer preferences, and the focus on evening trade is paying off,” Chiekrie explained. “Greggs is working hard to stay relevant in a shifting market.”
Here’s the burning question: Can Greggs reinvent itself to thrive in an era of health-conscious consumers and economic uncertainty, or is it destined to become a relic of Britain’s high street past? What do you think? Is Greggs still a growth story, or has it peaked? Share your thoughts in the comments—let’s spark a debate!
