Greggs ups prices of meal deals again and cautions over Iran war cost hit

Greggs has revealed its meal deals have gone up in price again as the bakery chain reeled in health-conscious and younger customers with new menu picks.

The company, which runs 2,759 shops, also cautioned that prices could go up further if the war in the Middle East continues to result in higher costs for businesses.

Roisin Currie, the chief executive of Greggs, told the Press Association that Greggs’s two-part breakfast deal, incorporating a roll and a drink, had risen from £3.15 to £3.25.

The breakfast deal had already gone up from £2.95 in October.

Furthermore, its core lunch deal has increased to £4.25, and its “big deal”, which incorporates a main, side and a drink, had risen to £5.25.

The “big deal” cost £5 when it was introduced in September last year.

Ms Currie said the price changes had already taken effect and there were no current plans for more.

It comes as the retailer is expecting its costs to rise by around 3% over 2026, but said it had taken steps to mitigate the impact such as securing fixed-price energy and fuel deals and purchase agreements for food and packaging.

However, Greggs warned that a “prolonged” conflict in the Middle East means it, along with other food retailers, “will likely see higher overall cost inflation through the end of 2026 and into 2027”.

Ms Currie told PA: “So we don’t see it in the coming months but we do see towards the end of the year and into next year, as the conflict goes on, then there will be an inflationary increase on our costs.

“Where significant inflation comes through to any businesses then that does get passed through at some point to the customer.

“We work really hard to protect our customers and make sure that we offer great value.”

Ms Currie added that customers continue to be “worried” about the uncertain geopolitical environment and “very focused on trying to make sure their budgets can go as far as possible”, which she said was benefiting Greggs as a lower-cost food chain.

It comes as Greggs revealed its sales had increased in recent months in an improvement to its performance after a slowdown in sales growth at the beginning of the year.

Sales in company-managed shops, rather than franchises, increased by 2.5% in the first 19 weeks of 2026, compared like for like with the same period last year.

This increased to 3.3% in the most recent 10 weeks, compared with the year before.

Greggs said new menu items like its chicken roll – an alternative to the staple sausage roll – and its range of matcha drinks were proving popular, while appealing to new and younger customers.

It has also been adding healthier items to its menu to cater to growing demand for nutritious and protein-rich foods including a range of salads, with a new chicken Caesar salad launching last week.

Ms Currie said the company was focused on “following the trends that the consumer is looking for”.

Greggs has been expanding its chain of shops having opened 41 during 2026, while closing 21, amid a target to open 120 on net over the year.

It also announced on Tuesday that its only international outlet will be opening at Tenerife South airport later this month as bosses hope to cash in on the millions of people passing through the travel hub each year.