Greggs plans to shut four UK factories and cut 740 jobs in £60m supply chain overhaul

Manufacturing closures across four UK sites

British bakery chain Greggs announced plans to shut four of its food manufacturing factories and cut approximately 740 jobs over the next two and a half years. The proposed closures will affect production sites at North Lakes near Penrith in Cumbria, Pettigrews in Kelso in the Scottish Borders, Seaham in County Durham, and Enfield in Greater London. Greggs stated that while manufacturing will stop at Enfield, the site will continue to operate as a distribution centre. A similar arrangement is planned for the Treforest site in Wales, which will end its manufacturing operations but remain active for distribution. The Newcastle-headquartered company confirmed that its retail store network will not be affected by the supply chain reorganization.

Supply chain shifts and cost projections

The restructuring program involves moving parts of the manufacturing processes to other facilities and reducing product ranges at certain regional plants. Greggs will scale back the variety of items produced at its Clydesmill site near Glasgow and its facility in Manchester. The company will also stop manufacturing tinned bread at its Gosforth site, while outsourcing the production of certain goods to specialist suppliers. Greggs estimated that the supply chain overhaul will cost £60 million, including operational disruption and redundancy payments. The business expects the reorganisation to generate £20 million in annual savings starting in 2028, describing the move as necessary to sustain growth in a cost-efficient manner.

Sales growth and store network expansion

The restructuring follows sales expansion across the retail business, which has grown to become the largest fast food chain in Britain. Greggs reported that quarterly sales grew by 7.7%, an increase from the 7.2% growth rate recorded in the first half of the year. Trading over the summer period was assisted by sales of iced matcha lattes, salads, and chicken rolls. The retailer opened 57 net new shops during the year and aims to achieve between 100 and 110 net new store openings by the end of 2026. To manage rising wage, energy, and packaging costs earlier in the year, the company increased the price of its sausage roll by 5p to £1.35 and raised its latte price by 10p to £2.25. Management indicated that while current-year performance improved, the company expects greater inflationary pressures in 2027.

Local responses and market reaction

The announcement prompted immediate reactions in local communities where production sites are slated for closure. In Kelso, where the Pettigrews bakery has operated since 1968, staff at the site declined to speak with reporters, while local authorities prepared employment support services. Kelso and district councillor Euan Robson stated that the facility employs fewer than 100 workers and outlined plans to contact Scottish ministers and local enterprise agencies.

It's not a big factory compared to some units around here, but it does employ a considerable number of folk for a small town and community like we have in the rural Borders, so any job loss is to be regretted, and a factory closure such as this has an impact on the local economy.

Greggs confirmed it will begin formal consultations with trade unions and employee representatives to refine the reorganisation proposals. Following the announcement on Wednesday morning, shares in Greggs rose 7.3% in early trading, leading gains among constituents of the mid-cap FTSE 250 index.