# Greggs to axe around 740 jobs and shut four factories

By Dan Coatsworth — 2026-09-30

Following the announcement that Greggs is planning to shut four factories with the loss of about 740 jobs, Dan Coatsworth, head of markets at AJ Bell, believes the company’s sales growth is reassuring.

He said: “Greggs has found its groove again. Cooler weather and adding more items to its menu has helped to accelerate sales growth. The update has reassured the market that Greggs has not gone stale like a two-day-old sausage roll.

“It is spinning more plates than a circus performer by opening and closing stores, launching new food and drink items, and proposing to restructure manufacturing operations. Sadly, the latter could result in hundreds of job losses.

“Greggs is carrying out a multi-pronged strategy to reposition itself for long-term success. Opening new stores increases the opportunity to reach as many members of the public as possible in sites with the most potential. Closing some stores is the company either admitting some aren’t in the best locations or finding more fruitful places nearby to set up shop.

“It is constantly changing the menu to ensure it taps into the latest trends, hence the big push on items like matcha and protein-led options. This also helps to create a buzz and potential word of mouth to drive more visits to a Greggs store. The risk is that Greggs is trying to do so much and its menu gets overly complicated.

“The proposed manufacturing consolidation is about trying to find long-term cost savings and have food preparation units located in the right places to serve what it wants the estate to look like in the future.

“Keeping a lid on costs is an important consideration for the business, particularly considering a warning about signs of greater cost inflationary pressures next year.

“The current high oil price environment is pushing up the cost of energy and is likely to do the same for food prices soon, meaning that Greggs is braced for tough decisions. It will either have to stomach a hit to profit margins or, more likely, pass that extra cost to the end customer.

“Shoppers may love a Greggs savoury snack or hot drink, but many people will be watching their pennies in an environment where inflation is accelerating and that could mean scaling back on discretionary purchases.”

Canonical: https://experts.pressassociation.com/expert/8/views/1bd3e80cd49ef16d