Greggs Reports £800 Million Sales as Matcha Drinks and Chicken Rolls Fuel Demand

Greggs has delivered another steady trading update, showing that its move beyond classic bakery staples is helping the chain hold customer attention in a tougher UK food retail market.

The company reported total sales of £800 million for the first 19 weeks of 2026, a 7.4% increase from the same period last year. Like-for-like sales across company-managed shops rose 2.5%, suggesting that growth is not being driven only by new openings, but also by continued demand at existing sites.

For Greggs, the latest figures underline a wider shift in strategy. The business is still strongly associated with sausage rolls, pasties and value-led bakery products, but its growth increasingly depends on broader food-to-go demand, hot drinks, healthier meals and locations that serve customers throughout the day.

The company said newer products including chicken rolls and matcha drinks have been performing well. The chicken roll gives customers another savoury option alongside the brand’s traditional sausage roll, while matcha drinks show Greggs trying to capture younger shoppers who are more influenced by café trends and social media-led food habits.

That menu shift matters because the UK grab-and-go market has become more competitive. Coffee chains, supermarkets, convenience stores and fast-food operators are all fighting for the same breakfast, lunch and snack customers. Greggs’ advantage remains its price point, but the latest update suggests the company knows value alone is not enough to keep growing.

Healthier food is becoming a bigger part of that strategy. Greggs has been adding more nutritious and protein-rich products, including salads, as it responds to changing lunchtime habits. A new chicken Caesar salad was launched last week, adding another option for customers who want something lighter without moving away from quick-service convenience.

This is an important development for the brand. Greggs does not need to abandon its core bakery identity, but expanding into salads, protein-led meals and trend-driven drinks gives it more ways to reach office workers, younger consumers and shoppers who may not visit purely for baked goods.

The chain’s store expansion is also supporting its sales momentum. Greggs opened 41 shops during 2026 and closed 21, leaving it with 2,759 sites. The company is targeting around 120 net new openings over the year, keeping expansion as one of the biggest drivers of future revenue growth.

Greggs has increasingly pushed into locations where customers are already moving through in large numbers, including transport hubs, retail parks and roadside sites. These locations help the business move beyond traditional high street footfall and capture demand from commuters, travellers and workers looking for affordable food on the move.

One of the most eye-catching parts of the update was the confirmation of a new international outlet at Tenerife South airport. The site is expected to open later this month and will give Greggs exposure to millions of passengers passing through one of Spain’s major tourist airports.

The Tenerife opening is not a large-scale international rollout, but it is still strategically interesting. The airport attracts many UK travellers who already know the Greggs brand, making it a lower-risk way to test overseas demand while benefiting from strong travel footfall.

Airport retail can also command reliable traffic, especially in popular holiday destinations. For Greggs, the location offers a chance to serve British tourists abroad while learning whether the brand can work outside its domestic market in carefully selected sites.

However, the company’s update was not entirely free from risk. Greggs warned that a prolonged conflict involving Iran could increase energy costs and push food retailers into higher overall cost inflation through the end of 2026 and into 2027.

That warning is significant because food businesses are exposed to inflation across several areas, including energy, transport, ingredients, packaging and labour. For a company built around affordable pricing, any sustained rise in costs could create pressure on margins if price increases cannot be passed on fully to customers.

The wider UK retail sector has already been dealing with fragile consumer confidence and elevated operating expenses. The British Retail Consortium has regularly highlighted cost pressures facing retailers, particularly around inflation, supply chains and changing consumer behaviour.

Greggs’ challenge is to protect its value reputation while continuing to invest in stores, product development and operational capacity. Its latest sales performance suggests the company is still finding that balance, but the cost outlook will remain important for investors through the rest of the year.

The most encouraging sign for Greggs is that its growth story now has several layers. New shops are adding scale, existing sites are still growing, menu innovation is helping attract younger customers, and travel locations could open up new pockets of demand.

At the same time, the company is not relying on one product category. The business is using its bakery heritage as a foundation while gradually building a broader food-to-go model that can compete across breakfast, lunch, snacks and drinks.

For customers, the appeal remains simple: quick food at accessible prices. For investors, the question is whether Greggs can keep expanding without losing the cost discipline that made the brand so successful in the first place.

If the company can manage inflation pressure while maintaining demand for newer menu items, Greggs may continue to stand out in a UK retail market where many consumers are still looking for value but also want more choice.

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