Greggs has announced a major restructuring of its manufacturing operations that will result in the closure of four factories and the loss of approximately 740 jobs over the next two and a half years. The move is part of a strategic shift toward a more centralized, high-tech supply chain designed to support the company’s long-term goal of expanding to 3,500 retail locations.
The manufacturing sites slated for closure are located in Enfield (Greater London), North Lakes near Penrith, Pettigrews in Kelso, and Seaham in County Durham. Additionally, the company will cease manufacturing operations at its Treforest site in Wales, though that facility will remain open as a distribution center.
Financial Impact and Market Reaction
The restructuring is expected to carry an immediate cash cost of £60 million. However, Greggs projects that the move will deliver annual pre-tax operating savings of £20 million starting in the 2028/29 financial year.
The update was paired with a strong third-quarter trading report. For the 13 weeks ending September 26, 2026, the company reported a 7.7% increase in total sales, while like-for-like sales at company-managed stores grew by 3.4%.
According to The Guardian, the sales growth was supported by menu innovations and an pivot toward a “food-to-go” variety, including protein-focused products and iced matcha lattes. Recent additions such as the Steak & Stilton Bake have also contributed to the volume growth during the quarter.
Expansion Targets and Economic Outlook
The company remains on track toward its ultimate target of 3,500 shops across the UK.
While current performance remains robust, Greggs management issued a warning regarding inflationary pressures. Although current inflation is holding around 2%, the company anticipates more significant cost headwinds in 2027. This outlook further underscores the drive for manufacturing efficiency as a means to protect margins against rising input costs in the coming years.
The transition period for the 740 affected employees is expected to last until 2028.
