Greggs warns of supply issues and staff shortages but plans to open more stores

The bakery said it has not been immune to the supply chain crisis

Greggs currently has around 2,100 shops and hopes to open 100 more before 2022. (PA)

Greggs will accelerate plans to open new bakeries across the UK despite being hit by staff and ingredient shortages in the supply chain crisis.

The Newcastle bakery chain said on Tuesday morning that it had “not been immune” to the disruptions in recent weeks and warned it expects costs to rise by the end of the year.

The company told shareholders it has “seen some disruption to the availability of labour and supply of ingredients and products in recent months”.

Yet, the company also said they have seen like-for-like sales increase by 3.5 per cent in the third quarter of this year, compared to pre-pandemic levels in 2019.

Greggs believes this year’s performance will surpass their previous expectations, and hopes for further expansion including the opening of 100 new shops before the end of 2021.

The chain, which already has around 2,100 bakeries, said: “Operational cost control has been good and the strong sales performance in the third quarter gives us confidence as we move into the autumn.”

It plans to accelerate its opening programme next year, with around 150 new shops planned as it pushes towards its long-term goal of 3,000 locations across the country.

It has already opened 68 stores since the start of the year.

Greggs also hopes to double its turnover to around £2.4 billion in the next five years, through the growth of its delivery services and evening trading operations.

The company is one of many food chains, including Costa, McDonald’s and Nandos, that have experienced supply disruptions in recent weeks due to shortages of, according to the Road Haulage Association, 100,000 HGV drivers post-Brexit and Coronavirus-related delays.

Last month, customers reported that Greggs ran out of items such as their chicken bake and chicken sandwiches in some stores.

The shortage of drivers was worsened due to the pandemic and a backlog of driver tests, and post-Brexit immigration issues have also been linked to the decrease with approximately 14,000 European lorry drivers leaving the UK last year.