Greggs is to close four manufacturing sites with about 740 jobs at risk as part of a £60 million overhaul of its food production network, despite the bakery chain reporting stronger sales and raising its outlook for the year.
The company said the proposed changes, which will be implemented over the next two and a half years, would consolidate manufacturing and relocate parts of its production process.
Sites earmarked for closure include factories at Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham. Greggs will retain distribution operations at Enfield.
The proposals will also affect manufacturing at its Treforest site in Wales, which will continue operating as a distribution centre. Greggs plans to reduce the range of products manufactured at its Clydesmill facility in Glasgow and its Manchester site, while ending production of tinned bread at Gosforth.
The company said it would increasingly source a small number of products from specialist suppliers as part of the restructuring.
Greggs’ retail estate will not be affected by the changes.
The overhaul is expected to cost about £60 million, including disruption and redundancy costs, but Greggs said it would generate savings of around £20 million across the 2028 and 2029 financial years.
The company is preparing to begin consultations with affected employees and their union representatives, stressing that “no final decisions have been made”.
Greggs employs about 33,000 people across the UK, with the overwhelming majority working in its shops.
Chief executive Roisin Currie said the changes were necessary to ensure the business remained competitive as customer expectations changed.
“To continue building a successful business for the future, we must keep evolving alongside changing customer expectations,” she said.
“We want to ensure Greggs remains a strong, sustainable business for decades to come.
“Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”
The restructuring comes as Greggs reported a 7.7% increase in sales for the three months to September 26 compared with the same period last year.
Trading strengthened through the quarter, with the company citing new product launches and “more settled weather” during August and September.
Like-for-like sales at managed shops rose 3.4%, while new store openings provided an additional boost.
Greggs said the performance represented progress despite “challenging market conditions”, with consumers continuing to face pressure on their finances.
The retailer has opened 95 new shops and closed 38 so far this year, taking its total estate to 2,796 outlets. It expects to achieve between 100 and 110 net new shop openings by the end of 2026.
The stronger trading performance and continued cost control mean Greggs now expects a “modestly improved outcome” for the year.
Cost inflation is currently “well managed” and is expected to remain around 2% during 2026. However, management warned of “signs of greater inflationary pressures in 2027”, as higher energy costs begin to feed through.
Greggs shares rose 6.5% to 1,997p, their highest level in about two months, as investors responded to the stronger trading update and improved outlook.
The contrasting figures underline the challenge facing the group: expanding its shop network and increasing sales while simultaneously reshaping the manufacturing infrastructure behind its growing retail estate.
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