Bakery chain’s 25,000 employees will receive up to £300 in this month’s pay packet

This article is more than 8 months old

This article is more than 8 months old

Employees at Greggs are being rewarded with a £7m special bonus after the hugely successful launch of the bakery chain’s vegan sausage roll last year boosted sales and profits.

The bakery chain’s 25,000 employees will receive up to £300 each in their pay packets this month – with shop floor staff and managers receiving the same amount. Greggs said it was making the one-off payment to workers “in recognition of their crucial contribution to business success”.

Some 19,000 staff, who have been with the company before and up to March last year, will receive the full £300 payment. The rest will be given £75 for every quarter they have been with the company, up to the end of last year.

Greggs launches meatless steak bake to beef up its vegan range Read more

The company, which has more than 2,000 outlets around the UK, upgraded profits guidance for the third time since early November as it said sales at established stores rose 8.7% in the three months to 28 December.

It said it was making the payout to staff after giving shareholders a special dividend of £35m last October as result of its stronger than expected trading.

Roger Whiteside, the chief executive, said the company had delivered “a strong finish to what has been an exceptional year for Greggs” during which total sales rose by 13.5%. Sales at established stores rose 9.2% for the year.

“The major investments we have made in recent years to make Greggs an attractive choice in the food-on-the-go market are delivering. Consumers are responding very positively and we have seen increasing visits from both new and existing customers,” he said.

The business has achieved high levels of growth in a tough market in which many restaurant and retail chains have been forced to restructure and close stores.

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Greggs said strong demand for its traditional ranges and the “huge popularity” of its vegan sausage roll had driven sales. It is adding to its vegan menu with a vegan steak bake and doughnut. Over Christmas the chain sold a vegan-friendly sweet mince pie.

Whiteside said Greggs faced potential cost inflation, particularly on pork, in the year ahead and the challenge of beating strong sales growth over the past year but continued to see further growth opportunities.

The business expects to open about 100 new shops in the next 12 months and is experimenting with takeaway dinners by opening some of its shops later. It is also developing ideas such as online ordering for collection and home delivery.