Greggs has announced that there will be a raise in prices in the coming months, despite seeing a 27.1% sales jump.
A spokesperson for the bakery said: “We know the economic environment is challenging and it is tough out there for our customers, so we are doing everything we can to protect our price proposition.
“We are not immune to cost inflation but we are trying hard to mitigate against it impacting customers.”
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Fans on social media have not responded to the news well, with one customer saying: “Greggs ain’t cheap or cost-effective.”
Another individual wrote: “It’s only going to get worse…”
“Just seen how much Greggs has put its prices up!! #p***take,” a third commented.
In May, the company raised the prices of all its products by 5p-10p, and even though it has seen a sales jump, it has been warned that it might need to increase its prices again.
Charlie Higgins, the head of equities at Wealth Club, told Sky News: “The cost of raw materials, energy and wages are all rising rapidly. Greggs is significantly exposed to all three, putting pressure on profits.
“There’s a limit to how far it can raise prices to offset these extra costs.
“If Greggs can maintain its recent sales momentum, it will go some way to offsetting inflationary pressures.
“But the group’s near-term prospects still look rather unappetising given the extremely unsavoury cost outlook.”
This comes after the recent news that McDonald’s will be increasing the price of its cheeseburgers for the first time in 14 years, going from 99p to £1.19.
Experts believe that Gregg’s has seen a rise in sales due to its meals being ‘affordable’ compared to other fast-food chains. However, this recent news shows that even the bakery has been affected by the economic crisis.
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