Greggs Sees 7.2% Sales Boost Amid UK Heatwaves, Driven by New Menu Items and Store Expansion

Greggs, Britain’s largest fast-food chain, has reported a 7.2% increase in total sales to £1.1 billion for the first six months of 2026, driven by the success of new menu items and strategic store expansions. Despite the challenges posed by the UK’s record heatwaves, the company saw a 2.1% rise in sales from existing stores, aided by targeted price increases at the start of the year.

The introduction of iced matcha lattes, an expanded salad range featuring protein-rich options, and a new chicken roll have been highlighted as key contributors to the sales boost. These innovations have helped attract health-conscious consumers and provided resilience against the typically detrimental effects of hot weather on pastry sales.

Greggs opened 34 new stores in the first half of the year, bringing its total outlets to 2,773. The company attributed the strong performance of these new locations to its “disciplined focus on high-quality sites.” CEO Roisin Currie emphasized that Greggs does not anticipate further price increases for the year, citing reduced cost inflation forecasts and successful hedging of 90% of its energy costs for 2026.

The company’s pre-tax profit surged by almost 20% to £76 million, also benefiting from the growth of its “bake at home” range, now available in Tesco and expanded in Iceland supermarkets. This turnaround contrasts with the previous summer’s decline, when hot weather negatively impacted sales of traditional items like steak bakes and vegan sausage rolls.

Analysts had questioned whether the UK had reached “peak Greggs” following the previous downturn, but the current results suggest a strong revival. Currie attributed this to the company’s adaptation to the UK’s increasingly hot summers, including the introduction of iced drinks and a revamped salad menu. New drinks targeting younger consumers, such as lemonades and matcha lattes, have also contributed to the appeal.

Julie Palmer of BTG advised that while Greggs remains on track with its expansion plans, the company must balance pricing and cost control to maintain market share, especially given the challenging economic outlook and the growing use of weight-loss medications.

Currie expressed confidence in Greggs’ ability to continue outperforming the market, with plans for further expansion, particularly in travel hubs, industrial sites, and motorway locations, alongside innovations in convenience and menu offerings.