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| How did Greggs conquer the High Street? | How did Greggs conquer the High Street? |
| (19 minutes later) | |
| While others have floundered in the recession, Greggs the baker has seen its fortunes rise and rise. Now it's planning to open another 600 stores. | While others have floundered in the recession, Greggs the baker has seen its fortunes rise and rise. Now it's planning to open another 600 stores. |
| It is almost midday in one of the Manchester branches of Greggs. Customers are queuing to buy lunch. | It is almost midday in one of the Manchester branches of Greggs. Customers are queuing to buy lunch. |
| There are builders choosing pasties and sausage rolls, a lady picking up some bread, while others peruse the meal-deals in the chiller cabinet. The latter equates to any bloomer sandwich, a cookie or doughnut and a drink - for the recession-busting price of £2.99. | There are builders choosing pasties and sausage rolls, a lady picking up some bread, while others peruse the meal-deals in the chiller cabinet. The latter equates to any bloomer sandwich, a cookie or doughnut and a drink - for the recession-busting price of £2.99. |
| A couple of children press their noses up against the counter filled with a creamy array of sticky buns and colourful biscuits. | A couple of children press their noses up against the counter filled with a creamy array of sticky buns and colourful biscuits. |
| Above it a large orange sign proclaims one of Greggs' marketing slogans of choice: "Freshly baked throughout the day." | Above it a large orange sign proclaims one of Greggs' marketing slogans of choice: "Freshly baked throughout the day." |
| There's a huge chunk of blokes who want lots of food cheaply - it's doing that job absolutely superbly Richard HuntingtonBranding expert | |
| Similar scenes are being repeated in the company's 1,400 or so other shops up and down the country. | Similar scenes are being repeated in the company's 1,400 or so other shops up and down the country. |
| Greggs the baker is a 21st Century British High Street phenomenon. With twice the number of outlets as Starbucks, and 200 more than McDonald's, it is "by far the largest food-to-go operator on the High Street," says Andrew Williams, deputy editor of British Baker magazine. | |
| "It is only rivalled in store numbers by Subway, which is quickly closing the gap. The second biggest bakery chain in the UK is Sayers, with 150 stores." | "It is only rivalled in store numbers by Subway, which is quickly closing the gap. The second biggest bakery chain in the UK is Sayers, with 150 stores." |
| Greggs' origins stretch back to the 1930s, when John Gregg started a business delivering yeast and eggs in the north-east of England. In 1951 the first shop opened on Gosforth High Street in Newcastle. | Greggs' origins stretch back to the 1930s, when John Gregg started a business delivering yeast and eggs in the north-east of England. In 1951 the first shop opened on Gosforth High Street in Newcastle. |
| Over the next 30 years the firm grew steadily, numbering 261 shops by 1984 when it floated on the stock market. | Over the next 30 years the firm grew steadily, numbering 261 shops by 1984 when it floated on the stock market. |
| But it's the economic downturn of the past two years that has really helped catapult Greggs to its current level of success. As household budgets have been squeezed, Greggs' brand of comfort food is enjoying a resurgence. | But it's the economic downturn of the past two years that has really helped catapult Greggs to its current level of success. As household budgets have been squeezed, Greggs' brand of comfort food is enjoying a resurgence. |
| Advertisement | Advertisement |
| Comfort food does well in recession | Comfort food does well in recession |
| This year, it has recorded a 3.8% rise in sales while others on the High Street have suffered. According to National Statistics there was a 6.4% fall in the number of retail bakery businesses last year. | This year, it has recorded a 3.8% rise in sales while others on the High Street have suffered. According to National Statistics there was a 6.4% fall in the number of retail bakery businesses last year. |
| Compare that with Greggs' announcement, in the summer, that it would be accelerating its programme of new shop openings. | Compare that with Greggs' announcement, in the summer, that it would be accelerating its programme of new shop openings. |
| But "Greggs the baker" as it's still familiarly known, is no longer just about baking. Although its biggest seller is still the sausage roll, of which more than two million are sold a week, it has branched out. You can buy a chicken pizza, a latte, soup and even something called a Tabasco chilli beef lattice. It's the sort of menu that has healthy eating enthusiasts despairing - an investigation of Britain's biggest sandwich makers by Channel 4 last year found Greggs had the highest levels of fat. | But "Greggs the baker" as it's still familiarly known, is no longer just about baking. Although its biggest seller is still the sausage roll, of which more than two million are sold a week, it has branched out. You can buy a chicken pizza, a latte, soup and even something called a Tabasco chilli beef lattice. It's the sort of menu that has healthy eating enthusiasts despairing - an investigation of Britain's biggest sandwich makers by Channel 4 last year found Greggs had the highest levels of fat. |
| "We can play on the strength of being a traditional baker," says Scott Jefferson, Greggs marketing director. "But because of our scale and expertise we can push forward in terms of nutrition and food technology in a way that a traditional baker never could." | "We can play on the strength of being a traditional baker," says Scott Jefferson, Greggs marketing director. "But because of our scale and expertise we can push forward in terms of nutrition and food technology in a way that a traditional baker never could." |
| Family run | Family run |
| Greggs has not surpassed the number of independent bakers in the UK | Greggs has not surpassed the number of independent bakers in the UK |
| Although Greggs has not overtaken the number of independent bakeries - there are more than 3,000 registered in the UK - its success will not have helped those who compete on cost alone. It offers prices that most independents cannot match. | Although Greggs has not overtaken the number of independent bakeries - there are more than 3,000 registered in the UK - its success will not have helped those who compete on cost alone. It offers prices that most independents cannot match. |
| "We are a vertically integrated business, so we own our supply chain. Because we make the vast majority of what we sell, we can absolutely control the costs all the way through," says Mr Jefferson. | "We are a vertically integrated business, so we own our supply chain. Because we make the vast majority of what we sell, we can absolutely control the costs all the way through," says Mr Jefferson. |
| But there's more to it than that. Industry experts believe Greggs' success is down to a canny realignment of who it targets - throwing greater emphasis on attracting male customers, rather than the females who would traditionally visit bakers. | But there's more to it than that. Industry experts believe Greggs' success is down to a canny realignment of who it targets - throwing greater emphasis on attracting male customers, rather than the females who would traditionally visit bakers. |
| It has rebranded its Bakers Ovens acquisitions as Greggs. In doing so, it has left behind the feminine, nurturing characteristics associated with that name. | It has rebranded its Bakers Ovens acquisitions as Greggs. In doing so, it has left behind the feminine, nurturing characteristics associated with that name. |
| "For a start it's called Greggs isn't it - it's a masculine sort of name," says Richard Huntington, director of strategy for the advertising agency Saatchi and Saatchi. | "For a start it's called Greggs isn't it - it's a masculine sort of name," says Richard Huntington, director of strategy for the advertising agency Saatchi and Saatchi. |
| "You've got a nice strong, although not particularly attractive, store environment, but it's a very gender neutral one. It's blue and yellow, it's pretty straight forward. They understand that what blokes want is pastry products that set them up to do an honest day's work." | "You've got a nice strong, although not particularly attractive, store environment, but it's a very gender neutral one. It's blue and yellow, it's pretty straight forward. They understand that what blokes want is pastry products that set them up to do an honest day's work." |
| Freshly baked | Freshly baked |
| But while it may be pulling in new customers by the thousands, not everyone is a convert - most notably healthy eating advocates. | But while it may be pulling in new customers by the thousands, not everyone is a convert - most notably healthy eating advocates. |
| Although it trades on being a traditional bakers offering wholesome goods, some argue Greggs is nothing more than a fast food outlet. | Although it trades on being a traditional bakers offering wholesome goods, some argue Greggs is nothing more than a fast food outlet. |
| "They may market themselves as a family baker, but they are clearly a chain of branded High Street food outlets," says David Barling, senior lecturer in food policy at City University London. "Convenience and fast food is an addition to their traditional baking role." | "They may market themselves as a family baker, but they are clearly a chain of branded High Street food outlets," says David Barling, senior lecturer in food policy at City University London. "Convenience and fast food is an addition to their traditional baking role." |
| Liked by customers, but not dieticians, pasties are among top sellers | Liked by customers, but not dieticians, pasties are among top sellers |
| He questions the nutritional value of Greggs' products and sees the brand as an example of the industrialisation of bread-baking. | He questions the nutritional value of Greggs' products and sees the brand as an example of the industrialisation of bread-baking. |
| "Sausage rolls wouldn't be ideal in any nutritional diet. In the case of industrially produced bread a lot of the nutrients are removed from the grain and then reinserted later as added-value extras. It is less healthy for us." | "Sausage rolls wouldn't be ideal in any nutritional diet. In the case of industrially produced bread a lot of the nutrients are removed from the grain and then reinserted later as added-value extras. It is less healthy for us." |
| Greggs says its flour is milled to traditional techniques and industry standards and, that any nutrient content would be described as typical. | Greggs says its flour is milled to traditional techniques and industry standards and, that any nutrient content would be described as typical. |
| Branding expert Richard Huntington agrees the Greggs brand undoubtedly owes much to McDonald's and Burger King. | Branding expert Richard Huntington agrees the Greggs brand undoubtedly owes much to McDonald's and Burger King. |
| But it has, at least, put bakers back on the High Street and is giving supermarkets a run for their money. | But it has, at least, put bakers back on the High Street and is giving supermarkets a run for their money. |
| "We may not adore Greggs in the way that we do some other brands, but we understand the role it plays and for whom that's relevant. There's a huge chunk of blokes who want lots of food cheaply. It's doing that job absolutely superbly." | "We may not adore Greggs in the way that we do some other brands, but we understand the role it plays and for whom that's relevant. There's a huge chunk of blokes who want lots of food cheaply. It's doing that job absolutely superbly." |
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