It’s bad news for sausage roll devotees as Greggs has warned prices could rise for a second time this year due to soaring staff and ingredient costs.

The bakery chain is facing an increase of up to 7% in running expenses – and says it can’t rule out passing the extra cost onto customers.

The looming price hike comes as inflation in the UK hits a record high and the cost of living continues to surge.

Profits will also be squeezed by global price rises as a result of the Russian invasion of Ukraine, CEO Roger Whiteside warned.

Russia and Ukraine supply around a third of the world’s wheat exports.

And Ukraine is also a major supplier of sunflower oil.  

Greggs has vowed to try and protect its reputation for providing ‘outstanding value for money’.

But the company said in a statement that rising costs ‘necessitated some price increases, which were made at the start of the year,’ adding ‘further changes are expected to be necessary.’

Mr Whiteside added: ‘We’ve got no plans to raise prices currently, but obviously that’s going to have to remain under review given the way the markets are moving around the world on commodity food prices in particular.

‘If the market allows price increases to move onto customers, then we will have to attempt to do that, if it doesn’t then we won’t be able to,’ he added.

The pandemic saw Greggs’ profits crumble as it announced its first loss in 36 years, going almost £14m into the red in 2020 when many branches were forced to close.  

But it swung back into the black last year, raking in £145.6m profit before tax.

The company also unveiled plans to extend later opening times in 500 shops across the nation.

It will also start offering delivery from 1,300 stores – up from 1,000.

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Greggs increased its slice of profits despite the UK food-to-go market remaining ‘depressed’ and ‘commuter footfall stubbornly below pre-Covid levels’, said Ross Hindle, data analyst at Third Bridge.  

But he warned: ‘With the wow factor of its vegan offerings now a distant memory, Greggs needs to provide more innovative and broad meal and drink choices, our experts say.’

Despite the bleak outlook, the company is sharing 10% of its profits with employees.

Staff who have been with the business for more than six years and work 20 hours a week are set to take home an £800 bonus.

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