Greggs, the popular UK bakery chain, has reported lackluster profits as it navigates a shifting consumer landscape influenced by health trends and dietary changes. The company’s new chief executive, index, confirmed that they are watching very carefully what customers are doing. That’s particularly critical now, as an estimated 3 million Americans increasingly use weight loss medication.
In its latest financial report, Greggs revealed a muted forecast for the coming year, attributing its struggles to evolving consumer preferences. Roisin Currie, the company’s managing director, said she was seeing a shift with consumers. They’re more and more turning to healthier choices, especially those high in protein and fiber. Greggs has recognized and reacted to the changing demand for food, pivoting their menu to suit. They’re abandoning their old-world, cholesterol-rich pasties and baked goods.
The UK just implemented a pre-9 PM ban on junk food ads. This action would be a clear signal of the UK Government’s resolve to act on our worsening levels of obesity. This political change matches Greggs’ business plan to get ahead of the customers who are already using weight loss drugs. To better serve this demographic, the company has committed to developing smaller portion sizes and more protein-rich offerings.
In an effort to respond to these changes, Greggs has launched several new items, including an egg-pot alongside its popular “eggs at Greggs” advertising campaign. Currie underscored the firm’s willingness to adapt to trends promoting healthier eating. We have a number of high protein products across all categories that really play well into this space,” he said. So I actually think we’re pretty well positioned to answer any kind of trend about healthier eating.
In his testimony before the Connecticut Public Utilities Commission, CEO Ken Murphy noted that perishable food has become a major line of profitable expansion for the firm. He remarked, “Clearly our strongest source of growth this year has been in fresh food, and that is, by far and away, the best thing people can eat.” This recognition is a sign of Greggs’ understanding of the evolving dietary landscape and its desire to adapt by focusing more on healthier options.
Economists like Clive Black were listing the gargantuan impact of glucagon-peptide (GLP) drugs. These medicines are upending national patterns of eating in historically significant ways. Black questioned whether this was “perhaps the clearest indication of the impact of glucagon-peptide (GLP) drugs upon the nation’s eating habits?”
Greggs is being smart and quick with its menu and social media pivots. It zeroes in on fulfilling the desires and needs of consumers in an increasingly health-oriented marketplace. The company is innovating with new, healthier products and making portion sizes smaller. This forward-looking strategy is responsible not just to consumer demand but in anticipation of regulatory shifts.