1. Greggs has done very well in the recession. What kind of rises have you seen, and why do you think that is?
Greggs already had a great reputation for great quality food at value prices, so we were well positioned for the recession and have seen positive sales growth in our sandwich, savoury and drinks ranges. In particular, where we have introduced lower price offers, such as the 99p sandwich, we have maintained our appeal to customers who continue to seek out value and want their money to stretch further but who aren't prepared to compromise on quality. Our hot drinks sales have increased, in part because we are more than 35 per cent cheaper than the national coffee chains, but still use freshly ground coffee beans and therefore offer the same quality product at a much lower price. We have also seen a 15 per cent increase in sales of the nation's favourite sausage roll, our best-selling product which our customers love!
2. Some commentators say Greggs owes some success to attracting male customers, as opposed to just the women who normally visit bakers. Would you agree?
We try to offer a variety of products to suit different tastes and to broaden our customer appeal. Our customers are almost a 50/50 split between male and female, so there doesn't seem to be any gender bias in our appeal, instead we focus on listening to what our customers are telling us, and responding to give them quality, fresh bakery food at great value prices.
3. Gregg's brand of traditional baking has a high fat content -- how important is nutrition to the product?
I think it is a misconception that we are only about high fat products. We make bakery food which includes sandwiches on bread we bake ourselves, and 25 per cent of our national sandwich range contains no mayonnaise and is therefore a lower fat alternative. We have also recently introduced healthier options sandwiches. Savouries inevitably have a higher fat content because they are pastry-based products where fat is a critical ingredient to taste. However, we try to minimise the fat content without detracting from the taste that our customers love. We have nutritional information in all our shops for our national savoury, sandwich and drinks ranges to help out customers make informed choices about the food they eat and enjoy Greggs food as part of their balanced diet.
4. Would you class Greggs as a baker or a fast-food outlet?
We are absolutely NOT a fast-food outlet! We are a bakers and our bakery food takes time and great care to produce, with all the expertise you would expect from a company that has been baking since 1939. Our food is well prepared and we make all our sandwiches fresh in our shops each day from bread we bake ourselves, delivered daily to our shops. We bake our savouries fresh in our shops each day, little and often, to give our customers the best quality product. We pride ourselves on fast service, but our food is carefully baked to our own recipes and is certainly not fast-food.
5. What is the biggest challenge facing Greggs today?
I think the biggest challenge facing Greggs is consumer confidence in the UK economy which directly impacts whether people are out and about spending on the high street. If high street footfall is down, this directly impacts us. We are increasingly looking at new shops located close to where people work, live and travel, where we believe significant growth opportunities lie. Despite commodity price increases, we constantly try to keep our prices low for our customers, because we know that in these tough times they are increasingly wanting great value.
6. What is the biggest challenge facing the high-street food industry today? How is the industry coping with the economic current climate?
I see the biggest challenge facing the high-street food industry the same as that facing Greggs, that is whether consumer confidence and concern over the national debt, unemployment and future tax implications will hold people back from spending.
The industry seems to be polarizing into those companies for whom the recession has proved too challenging and are going into administration, and other companies that seem to be benefitting and getting stronger. It is the latter group who continue to deliver great value, innovate with new products and promotional offers, and listen and respond to their customer needs.
7. What makes Greggs distinct as a business?
What I think sets us apart from our competitors is our 'wheat to eat' proposition, making and baking the majority of our products ourselves and selling them through our own shops. By owning the entire process we can offer fantastic quality, fresh bakery food at great value prices, and I think our customers recognize this. The other thing that I think makes Greggs distinct is that it is a company that cares, and long before corporate social responsibility was talked about, Greggs has been genuinely doing lots of good work in local communities. The Greggs Foundation, founded 22 years ago by Ian Gregg, has raised over £20million for local people; our Breakfast Club scheme gives over 6,000 primary school children in deprived areas a free, healthy breakfast each day; and our phenomenally successful fundraising for BBC Children in Need, has raised £1.3million in the last 4 years. It is the commitment of Greggs people not only to the products we bake and sell but also our values and doing the right thing for our local communities that really sets us apart.
8. What has been your personal biggest challenge so far, or your proudest achievement?
I am most proud of the fantastic team of 19,000 people at Greggs who each do an outstanding job and who never fail to impress me with their drive and commitment. This was seen most recently during the bad weather, where I heard so many reports of the heroic efforts of our staff to keep our shops open for our customers, such as the lady who walked 12 miles in the snow to open the shop.
My proudest personal achievement is my 5 children, Steve, Cathy, Cameron, Rory and Sophie. They keep me very grounded!
9. What next for Greggs?
We recently announced our intention to open over 600 new shops in the next few years, creating over 6,000 new jobs around the UK. We estimate that 50 per cent of the UK population does not currently have access to a Greggs shop and certainly many of the customer letters I receive are requests for a Greggs shop to be opened near to them. Most importantly, we will continue to listen to our customers and respond to meet their needs, and hope to attract new customers who might not have shopped at Greggs before. I am really excited about our growth plans for the future!
