If you’ve walked down a high street, spent time in a shopping centre, or visited a train station as of late, chances are you will have seen one – or multiple – Greggs stores along your way. The brand has become a food and drink staple, with consumers appreciating its hearty bakery fare, affordable pricing, and expansive on-the-go options. It has over 2,500 locations across the UK and consistently records strong financial results.
In short: the Greggs brand is enjoying terrific success. So, it’s no surprise that it’s got many entrepreneurs excited about the opportunity – many of whom will have plenty of questions. Questions like: How much does a Greggs franchise cost? How can I open my own Greggs franchise? We’ll jump into answering those questions soon, but first, it’s important to look at the history of Greggs to track its success story to date.
The History of Greggs: From Door-to-Door Sales to High Street Staple
Greggs was founded in 1951 by John Gregg when he opened his first bakery shop on Gosforth High Street in Newcastle. While that was the company's first physical location that would become Gregg’s, its roots can be traced back even further, to 1939 when Gregg started a door-to-door bakery delivery service.
The growth of the company mainly came in the 1970s, though, when the brand started acquiring other bakeries and growing its footprint and operations. Under the leadership of Ian Gregg, who took over the family business in 1964 after his father’s death, Greggs developed a reputation for good quality and great value. The company also expanded into Scotland, Yorkshire, and the North West during this period.
In 1984, it was floated on the London Stock Exchange with a market capitalisation of £15m and an estate of just over 260 shops. In 1994, it bought the Bakers Oven Chain and then rebranded 165 of those shops as Greggs.
One of the most seismic moments for the business, though, came when it transitioned from being a bakery business to a ‘food on the go’ operation. The reasoning behind the change was that the management of the business felt that Greggs couldn’t compete with supermarkets offering baked goods. The change turned out to be the correct decision and the business has boomed ever since.
Greggs began franchising in 2012 and now has over 500 franchise locations across the UK. It has over 2,500 locations in total – franchised and corporate – across the UK.
How Much Does a Greggs Franchise Cost?
The total investment for a Greggs franchise ranges from £260,000 to £390,000. This includes:
- Initial franchise fee: £25,000 to £30,000
- Store equipment: £100,000 to £150,000
- Initial stock and ingredients: £20,000 to £30,000
- Shop fitting: £120,000 to £180,000
Additionally, franchisees should have:
- Minimum net worth of £250,000
- At least £100,000 in liquid capital
Ongoing costs include:
- Royalty fee: approximately 6% of gross sales
- Advertising fee: around 2% of gross sales
How Much Can You Earn From a Greggs Franchise?
While specific profit figures aren’t publicly available, many food and beverage franchises aim for a 10-20% return on investment annually. Profitability will depend on several factors, including location, operating cost management, customer demand, seasonal promotions, and new product launches.
Over the last 10 years, Greggs has achieved a revenue and operating income compound annual growth rate (CAGR) of 9% and 15.3% respectively. It is considered a commercial smash hit and deemed a bonafide success story, with more locations in the UK than both McDonald’s and Subway.
It is worth noting that with collective growth and increased brand awareness, individual store profits can also increase. Greggs surpassed £2bn in annual sales for the first time in 2024, with a record 226 new shops opened in that financial year. Considering that, now could be a good time to invest in this growing brand.
Training and Support: What Does Greggs Offer its Franchisees?
In return for an investment, Greggs provides comprehensive support to its franchisees, including:
- Structured training programme covering business operations, equipment use, and team management
- Ongoing support from business development managers
- Access to Greggs’ centralised logistics and supply chain
- Use of Greggs brand, marketing resources, and store signage
The training and support fee typically ranges from £5,000 to £7,500.
The Greggs team will also help franchisees to select a location, with the brand paying close attention to high-traffic areas like train stations and shopping centres.
How Can You Buy a Greggs Franchise?
If you want to become a Greggs franchisee, there are a few steps that you will need to go through. The process generally entails:
- Meet the financial requirements like minimum net worth and liquid capital
- Contact Greggs’ franchise department
- Complete the application process
- Undergo a thorough vetting and interview process
- If selected, undergo comprehensive training
- Work with the Greggs franchise team to select a suitable location
- Set up the store with Greggs’ support
- Launch your store or franchise
It’s important to note that Greggs looks for franchisees with strong business acumen, management skills, and a passion for customer service. There is also limited availability of franchise locations, as most Greggs stores are company-owned, however, this shouldn’t deter would-be franchisees too much, as the company has publicly stated it is targeting having a portfolio of 3,000 locations.
Tip: You don't need to supply all the up-front costs yourself. Read our How to Finance a Franchise guide to find out how to apply for finance.
Another thing worth factoring in is that some of Greggs’ long-standing partnerships are with major franchise companies like MFG, EG Group, and Moto, which enable access to strategic locations such as petrol stations and motorway service areas. If you represent a company that has expertise in these desirable location types, you’re more than likely to stand out to the Greggs franchise recruitment team.
Finally, while at a glance the initial investment in a Greggs franchise could be considered steep, the strong brand recognition, comprehensive support, and potential for consistent revenue make it an attractive opportunity for the right investor.
Other Franchise Opportunities You Can Consider
Owning a Greggs franchise is an exciting opportunity to invest in a trending brand on an upward trajectory, however, if you don’t have the requisite financial backing or there are no ideal locations nearby then don’t be deterred. There are hundreds of exciting franchise opportunities available, especially in the food and beverage space.
If you’re still deciding on what franchise to choose, you can take some time exploring other food-related franchise opportunities on BusinessesForSale.com.
You can also read our useful franchise guides. These offer credible information on the world of franchising, from how to choose the best franchise to understanding franchise agreements.
Frequently asked questions
Does Greggs offer franchises?
Greggs started franchising in 2012 and has offered franchise opportunities ever since, so you can conclusively say that Greggs is a franchise.
How much does it cost to open a Greggs?
The total investment for a Greggs franchise ranges from £260,000 to £390,000
Can you buy a Greggs franchise?
Many brands offer franchise resale opportunities, typically when a franchisee wants to exit the business or sell their location.