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A high street giant has revealed why their iconic sausage rolls have gone up in price. Greggshas said that Government decisions have forced it to hike prices.

The chain said the increase in National Insurance contributions and minimum wage, and the net zero packaging tax, are the "main drivers" in the 5.5% rise in costs last year. They said that these changes would continue to push prices up, after a "very tough" winter. Also impacting prices are higher production costs - Greggsrecently upgraded online systems and built new distribution centres in Derby and Kettering. In January, Greggs' sausage rolls went up by 5p to £1.35, and all coffee prices went up by 10p. The company is now trying to slash costs to reduce the pressure to raise prices.

Last year, Greggs saw a 4% decrease in operating profits, despite a 7% increase in sales. Analysts told the Telegraph these numbers were "disappointing" and pointed to low consumer confidence and the increased use of weight-loss jabs.

The retailer also said that the "prolonged high temperatures experienced in June and July" had a "material impact on footfall and consumer behaviour".

Despite this, Greggs opened 121 new shops in 2025. It now has a total of 2,739 stores across Britain. The company said it had a target to open "significantly more than 3,000" UK sites over time.

Around 120 new openings are planned for this year, as well as new "bitesize" formats in small, high-footfall areas.

Roisin Currie, chief executive of Greggs, warned investors that profits for 2026 were likely to be flat compared to last year, which were £167.4 million.

However, she said: "We have a strong pipeline of new shop openings in 2026, primarily in new catchments that drive strong returns, and our investment in supply chain capacity is on track."