Challenges of the pandemic continue

GREGGS has been forced to increase prices, reduce its menu and close some stores as it deals with the Omicron surge and rising costs.

Chief executive Roger Whiteside revealed that around 70 of its 2,100 stores had had some form of closure due to Covid-fuelled staff absences, ranging from closing an hour early to shutting altogether. He added the impact of Omicron was rising all the time.

Greggs has also had to deal with rising wage costs, food bills and supply chain problems, which have led to some price rises and items being temporarily unavailable.

Mr Whiteside said those shortages had been unpredictable and meant some products were not available on some days.

On staff absences, he said: “It feels about the same as during the pingdemic. Stores are having to close as a result – not necessarily whole days but if you turn up in the morning and half the people aren’t there we see if we can find people in nearby shops who can help out.

“It typically means a shop might have to close early or open late, or in some cases not open at all because they can’t get the team together.”

Mr Whiteside was speaking after Greggs released results that showed a strong performance in October being followed by more challenging conditions as more people stayed at home with the Government’s switch to its Plan B coronavirus measures. And while restrictions led to an easing of sales in the winter months, customers who did venture out snapped up 6.7m mince pies and Greggs’ vegan festive bake sold well, the company said.

On price rises, Mr Whiteside said: “We try to absorb as many of the cost increases that get passed to us as possible and then put through price increases where we can’t avoid it, and we’ve done that this year – 5p here, 10p there – where we’ve simply been unable to absorb all the price increases placed on us. The question is, does the inflationary pressure recede or go up.”