As Greggs continues to expand its operations, the UK's seemingly insatiable appetite for sausage rolls and other baked goods remains a topic of debate among analysts and investors. With the company's production capacity at an enormous 4.5 tonnes of pastry per day, it appears that demand could be satiated. However, Greggs is planning to launch not one but three automated production sites in Derby, Kettering, and Northamptonshire by 2027, with estimated capital expenditure of £300m.
The scale of Greggs' expansion has raised eyebrows, particularly given the chain's recent struggles with sales growth. In 2025, the company reported a decline in like-for-like sales, prompting analysts to question whether the UK has reached its limit for Greggs. The chain's share price has fallen by around 40% over the past year, making it one of the most-shorted stocks in the UK.
Despite this, Roisin Currie, Greggs' chief executive, remains confident that the company will continue to grow. She notes that Greggs has a history of bouncing back from downturns and attributes its success to its focus on quality and value for customers. However, some analysts are more cautious, warning that the chain may be over-expanding and risks facing increasing competition.
One concern is the impact of growing obesity rates in the UK on demand for calorific pastries. While Greggs has introduced healthier options such as fruit pots and salads, it remains to be seen whether these will be enough to offset declining sales among weight-conscious consumers. The rise of healthier alternatives from rival chains could also pose a threat.
In an effort to stay relevant, Greggs is experimenting with new formats, including smaller shops in high-footfall locations. The company's annual pop-up venue, which debuted last year as the "Golden Flake Tavern" within Newcastle's Fenwick department store, has proven popular among customers eager to indulge in its signature treats in a more festive setting.
However, some analysts believe that Greggs needs to take a closer look at its core business and focus on delivering value for customers. Dan Coatsworth, head of markets at AJ Bell, argues that the company must "do something" to address its current struggles, rather than simply downplaying concerns about sales growth.
As Greggs prepares to reveal its festive bake and mince pie sales figures in January, investors will be watching with bated breath to see whether the chain can turn its fortunes around. With the UK's appetite for sausage rolls and other baked goods showing no signs of waning, it remains to be seen whether Greggs can continue to thrive despite its recent challenges.
The scale of Greggs' expansion has raised eyebrows, particularly given the chain's recent struggles with sales growth. In 2025, the company reported a decline in like-for-like sales, prompting analysts to question whether the UK has reached its limit for Greggs. The chain's share price has fallen by around 40% over the past year, making it one of the most-shorted stocks in the UK.
Despite this, Roisin Currie, Greggs' chief executive, remains confident that the company will continue to grow. She notes that Greggs has a history of bouncing back from downturns and attributes its success to its focus on quality and value for customers. However, some analysts are more cautious, warning that the chain may be over-expanding and risks facing increasing competition.
One concern is the impact of growing obesity rates in the UK on demand for calorific pastries. While Greggs has introduced healthier options such as fruit pots and salads, it remains to be seen whether these will be enough to offset declining sales among weight-conscious consumers. The rise of healthier alternatives from rival chains could also pose a threat.
In an effort to stay relevant, Greggs is experimenting with new formats, including smaller shops in high-footfall locations. The company's annual pop-up venue, which debuted last year as the "Golden Flake Tavern" within Newcastle's Fenwick department store, has proven popular among customers eager to indulge in its signature treats in a more festive setting.
However, some analysts believe that Greggs needs to take a closer look at its core business and focus on delivering value for customers. Dan Coatsworth, head of markets at AJ Bell, argues that the company must "do something" to address its current struggles, rather than simply downplaying concerns about sales growth.
As Greggs prepares to reveal its festive bake and mince pie sales figures in January, investors will be watching with bated breath to see whether the chain can turn its fortunes around. With the UK's appetite for sausage rolls and other baked goods showing no signs of waning, it remains to be seen whether Greggs can continue to thrive despite its recent challenges.
. Greggs is so focused on expanding that they're neglecting their core customer base. I mean, have you seen the state of high-street shops lately? They're just churning out new locations without thinking about how it's affecting the existing ones. It's like they're trying to keep up with the likes of Amazon or something 
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. I think Greggs needs to take a step back and re-evaluate their business model. Instead of just introducing healthier options, they should be looking at how they can reduce calorie content across the board. It's all about sustainability and customer loyalty for me 
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. They need to take a close look at their operations and make some real changes, not just throw more cash at the problem 
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Greggs needs to get its priorities straight - focus on quality & value over just churning out pastry 
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. Four point five tonnes of pastry per day is a lot, especially if it's not sustainable. Not to mention the waste generated from all those packaging materials 
. They need to find a way to make their treats healthier without sacrificing flavor or quality. Maybe it's time for them to think outside the box (or pastry bag) 
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I mean, who doesn't love a good excuse to grab some sausage rolls or a sandwich on the go? But at the same time, it's hard not to think that they're just trying to make up for declining sales 
. Do you think Greggs will be able to turn things around, or am I just holding out hope for a sausage roll lover's dream come true? 
. The fact that they're launching three automated production sites and £300m worth of capital expenditure is pretty massive 
. The pop-up venue thing seems cool, and if they can keep customers engaged, maybe they'll be able to boost sales 
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. Fingers crossed Greggs can turn things around and keep those sausage rolls flying high!