Greggs, Britain’s largest fast-food retailer, has unveiled proposals to close four manufacturing facilities as part of a restructuring initiative. The bakery chain stated the closures are necessary to ensure sustainable growth while operating at maximum cost efficiency. The company expects to incur approximately £60m in initial expenses related to disruption and severance obligations, which would be offset by projected annual savings of £20m by 2028.
The potential closures could affect facilities located in Enfield in north London, Penrith in Cumbria, Kelso in Roxburghshire, Scotland, and Seaham in County Durham. Under the proposals, Enfield would transition to distribution operations only, while manufacturing at the Treforest site in Wales would cease with the facility continuing as a distribution center. The company emphasized its commitment to minimizing hardship for affected employees and announced it would enter consultation with trade unions and employee representatives to refine the proposals.
The announcement comes despite Greggs reporting robust sales performance, with quarterly growth of 7.7%, up from 7.2% in the first half of the year. The company has undertaken aggressive expansion, opening 57 net new locations recently as part of its strategy to establish between 100 and 110 additional shops by the end of 2026. Product innovations including iced matcha lattes and expanded salad and chicken roll offerings contributed to sales momentum during summer months.
Looking ahead, Greggs indicated that while stronger sales have provided modest improvement to its annual outlook, management anticipates intensified inflationary pressures in 2027. The company has already implemented price increases on signature items earlier this year, raising sausage roll prices by 5p to £1.35 and latte prices by 10p to £2.25, reflecting efforts to manage elevated wage, energy, and packaging expenses. Greggs operates over 33,000 employees across the United Kingdom from its Newcastle headquarters.
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