Greggs to sell sausage rolls in Spain

Greggs is set to start selling sausage rolls in Spain as it seeks to bounce back from a string of lacklustre results.The company said the shop in Tenerife South Airport – which would be its first bakery outside the UK in almost 20 years – would serve as a “travel hub test”.The store will open in the coming weeks, selling its standard menu alongside new items, including a Spanish omelette breakfast roll.Róisín Currie, the chief executive of Greggs, said: “We’ve been running travel hubs in the UK now for a number of years. We know that we run them very successfully and that the airport customer really appreciates the breadth of offering and the value that we can offer in those travel locations.”She added that if the Tenerife launch proved successful, there would be “conversations to be had about other opportunities in the future”.It mirrors a similar push by JD Wetherspoon, which earlier this year opened a pub in Alicante targeting British tourists looking for familiar food and drink abroad.Greggs unveiled the plans for its new Spanish bakery as shares in the company jumped 4pc on Tuesday after it reported stronger-than-expected sales.Like-for-like sales rose 2.5pc in the 19 weeks to May, while total sales climbed 7.5pc to £800m.It will ease fears that Britain has reached “peak Greggs” after years of rapid expansion. Investors had been rattled earlier this year by weaker growth at the chain.It followed a series of price rises at the bakery chain, driven by higher wage bills, energy costs and taxes.The company raised the price of its breakfast and lunch meal deals by 10p last week, which came after a 5p increase in the cost of its sausage rolls to £1.35 in January.In March, Greggs blamed Labour’s increase in employers’ National Insurance contributions, alongside a new packaging levy, for driving a 5.5pc rise in annual costs.In an update on Tuesday, Greggs said it expected cost inflation of 3pc this year.However, Ms Currie ruled out further price rises in 2026 despite fears the conflict in the Middle East could hit supply chains and energy markets.She said: “We obviously are guessing that the whole sort of Middle East conflict means things can change quickly.“But because we have hedged, we’ve got forward cover on commodities, we’re covered quite significantly in energy this year, and some of next year, then we’re feeling comfortable where we are just now.”The bakery chain has also been overhauling its menu as consumers shift towards healthier eating habits and high-protein diets, fuelled by the boom in weight-loss jabs.In recent months, Greggs has expanded its range of salads, chicken products and lower-calorie options as it seeks to attract more health-conscious customers.