In the News Teaching Activity – has selling pizza helped improve Greggs’ profitability? (Mar 2025)

Greggs' revenue surpassed £2bn in 2024, driven by strong sales of pizzas and hot food, but its iconic sausage roll remains the top seller.

The bakery chain’s strategy of menu expansion and shifting store locations is fuelling growth of the business, with evening sales rising and nearly half of its outlets now outside traditional High Streets. However, sales fell short of the forecasts, and shares dropped 12% amid cost-of-living concerns. However, despite these challenges, Greggs remains optimistic, with plans for more store openings, extended trading hours and increased digital sales to sustain momentum in a tough retail environment.

Greggs' sales top £2bn after pizza boost but sausage roll still king - BBC News

1. How has Greggs adapted its business strategy to drive growth in a changing retail environment?

2. How might rising employment costs and cost-of-living pressures impact Greggs' pricing and overall business strategy?

3. Considering Greggs' market strategy and economic conditions, evaluate how price elasticity of demand could affect its future pricing decisions.