Bakers, Greggs, have warned that the cost of a pasty could be set to rise along with many of its other products due to fears of a shortage of wheat and sunflower oil caused by the ongoing conflict between Russia and Ukraine.
Additionally soaring energy costs have added to pressure on the baked goods chain which was already struggling to regain ground following the end of covid restrictions.
Higher staffing and other ingredients price increases have also pushed up operating costs.
Although the chain has no immediate plans to increase its prices, it is carefully monitoring the ongoing dynamic situation as well as moves from its competitors.
An increase of up to 10p on its most popular items such as pasties and sausage rolls has not been ruled out having already added a similar amount on many products at the start of the year.
Roger Whiteside, the outgoing chief executive, said:
Quote“Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however given this dynamic we do not currently expect material profit progression in the year ahead.”
Despite its woes, Greggs is still on track to open up to 150 new stores each year despite a recent share slide of 6%.
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