Greggs, the chain of bakeries known for its cheap-and-cheerful sausage rolls and pasties, is going upmarket.
The retailer has long been associated with greasy and sugar filled snacks, but it is now trying to reinvent itself as a “modern, well-invested food-on-the-go retailer” to rival the likes of Pret A Manager.
To do this, it has launched things like salads, no added sugar drinks, and soups. Morning coffees are also one of its fastest-growing products.
The latest addition to its new high-end menu is the Flat White, a posh cappuccino-style coffee imported from Australia that has become popular with coffee aficionados in hip areas such as London’s Shoreditch (so much so that East London’s tech boom has been dubbed the Flat White Economy).
It’s all a far cry from former staples like doughnuts and scotch eggs.
Greggs announced the upcoming launch of Flat Whites at its stores in its fourth quarter and full-year trading update on Tuesday. Sales were up 5.2% in the year but growth slowed to just 2.3% in the fourth quarter. Full-year results are expected to be in line with forecasts.
Investors aren’t impressed, however, and Greggs shares are down 8% this morning.