Greggs Breakfast Deal Reigns Supreme in UK as McDonald's Falls Behind
Step aside, Egg McMuffin! Greggs' bacon and sausage buns are the new breakfast favorite among Brits. This budget bakery chain, with 85 years of history, is celebrating its most successful year yet.
Forget the Egg McMuffin. Brits are loving the bacon and sausage buns from Greggs, a bakery chain that has been around for 85 years. They recently had their best performance ever.
The company announced on Tuesday that they captured 19.6% of the breakfast food-to-go market in the UK last year, surpassing McDonald's and becoming the top spot. They also secured 8.2% of the overall takeaway food market, reaching an all-time high from 7.7% in 2022.
Last year, Greggs saw a significant increase in pre-tax profit, reaching a record high of almost £168 million ($213 million).
The bakery chain is rapidly expanding, with close to 2,500 stores in the UK by the end of 2023. This number surpasses the 1,450 stores that McDonald’s has in both the UK and Ireland. Greggs aims to open up to 160 new stores this year.
McDonald's UK has not responded yet to a request for comment.
Greggs began as a family-owned business that supplied bread and baked goods to mining communities in Newcastle, a city in northeast England. Since then, it has attracted budget-conscious customers to its stores.
An employee at a McDonald's Corp. restaurant in Oakland, California, is seen handing an order to a customer through a drive-thru window. The employee is wearing protective gloves. This photo was taken on Thursday, April 9, 2020.
An employee wearing protective gloves hands an order to a customer through a drive-thru window at a McDonald's Corp. restaurant in Oakland, California, U.S., on Thursday, April 9, 2020.
David Paul Morris/Bloomberg/Getty Images
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Customers are frustrated by the high price of $3 for a single McDonald’s hash brown. However, despite this, the chain has seen a surge in popularity due to partnerships with supermarkets, food delivery apps, and a major clothing retailer. Additionally, the cost-of-living crisis has led many Brits to cut back on expenses, further boosting the chain's popularity. As a result, its stock has increased by 57% in the last five years.
Greggs' breakfast meal deal, which includes a choice of sausage, bacon, or omelette-filled bun along with a drink, starts at £2.85 ($3.62) and is a favorite among customers, according to a company spokesperson speaking to CNN.
The company's goal, announced in 2021, to double sales by 2026 is progressing well, as confirmed by chief executive Roisin Currie in a statement on Tuesday. Sales hit a record high of £1.8 billion ($2.3 billion) last year, up from £1.2 billion ($1.5 billion) in 2021.
"According to Matt Britzman, an equity analyst at Hargreaves Lansdown, Greggs is more than just a tasty indulgence. Its affordable prices are appealing to consumers facing rising living expenses," Britzman stated in a note on Tuesday. He emphasized the importance of Greggs maintaining its competitive pricing, and noted that as cost increases stabilize, Greggs is passing on the savings to customers.
Britzman also described Greggs as having a "nostalgic" appeal, attracting customers with a sense of familiarity and comfort.
The company has found success through fun and engaging partnerships that aim to reach a wider audience.
In 2022, Greggs teamed up with Primark to launch a unique line of clothing, including items like bucket hats, t-shirts, and leggings affectionately referred to as "greggings," all featuring the recognizable blue-and-yellow Greggs logo.
Greggs café, Tasty by Greggs, inside Primark's Oxford Street store in London in October 2022.
Greggs café, Tasty by Greggs, inside Primark's Oxford Street store in London in October 2022.
In December, Greggs opened a temporary restaurant at Fenwick, a fancy department store in Newcastle. They offered their famous sausage rolls and Steak Bakes served under silver lids. They also put their twist on eggs benedict, calling it Greggs Benedict. John Nguyen/Press Association/AP
Greggs' main attraction is its simplicity and convenience, according to Alex Morton, a recruiter from London. She mentioned to CNN that she has been frequenting Greggs stores during her lunch breaks since high school.
“It's a national treasure,” she shared. “It brings back memories and makes me feel nostalgic. Nowadays, what I love most about Greggs is how fast and convenient it is. When I'm in a hurry, I always go for the Sausage, Bean, and Cheese Melt.”
Editor's P/S:
Greggs' remarkable success in the UK breakfast market is a testament to its ability to cater to budget-conscious consumers amid the rising cost of living. By offering affordable and convenient meal deals, Greggs has surpassed McDonald's in market share, capturing the hearts of Brits who prioritize value and familiarity. The company's focus on maintaining competitive pricing and its nostalgic appeal have resonated with customers, making it a national treasure.
Greggs' innovative partnerships with Primark and Fenwick showcase its commitment to reaching a wider audience. By incorporating its recognizable logo into fashion items and offering upscale dining experiences, the bakery chain has expanded its brand recognition and created a sense of community around its products. The company's commitment to simplicity and convenience continues to drive its success, making it a go-to destination for Brits looking for a quick and affordable meal.
