Market commentary

Greggs is quietly becoming a drinks brand. The home of the sausage roll leaned on matcha and cherry lemonade to get through a scorching summer, and its push into protein, salads, and functional drinks shows it’s following customers towards healthier habits.

New shops are doing most of the work. Existing stores delivered less than half the growth, and once inflation is taken into account, customers aren't buying much more than they did a year ago.

Q4 will see a sprint on the building sites. To hit its target, the sausage roll superpower needs to open roughly three-quarters as many shops in the final quarter as it managed in the first nine months.

The factory shake-up is the tougher news. Around 740 jobs could go, which is a big call for a business proud of making its own products, though spending £60m to save £20m a year pays for itself in about three years.

Savour the 2026 upgrade, because Greggs is already flagging higher costs and inflation for 2027. The high street stalwart has survived a heatwave and a cost-of-living crisis, but a £1.50 sausage roll could be a real test of loyalty.

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