Specialist
Former Divisional Head at Greggs plc
Agenda
- Demand trends across the food-to-go sector
- Footfall and pricing dynamics
- Greggs' (LON: GRG) competitive positioning – stores vs online
- Margin update and supply challenges
Questions
1.
What have been the key trends in the UK food-to-go market over the past 18 months? What level of recovery have you started to notice?
2.
When do you expect Greggs to reach 2019 growth levels? Do you think that’s very much a 2022 kind of play or could that happen towards the end of 2021?
3.
How have you been assessing average spend or average ticket size through the pandemic? How is this starting to trend as lockdown lifts?
4.
How have food-to-go outlets such as Pret a Manger and Greggs performed vs QSRs such as McDonald’s?
5.
Do you expect any market share shifts between QSRs and food-to-go outlets as lockdown lifts?
6.
How reasonable is it to believe the long-term growth trajectories of the food-to-go sector and places such as Greggs should be reconsidered and readjusted? Do you think anything has structurally changed due to the pandemic?
7.
What has been happening to pricing within the industry? How have price and range developed through the pandemic? Have there been any price increases? There were mentions of range reductions.
8.
Do you think there is any risk of deterring customers through price increases, or do you think there is quite a lot of elasticity there and prices can increase a bit further before any customers are lost?
9.
You mentioned certain categories may be more elastic than others. Where do you think prices can be passed through most easily? What categories might it be a struggle for?
10.
There has been disruption to global and local supply chains, especially with Brexit. Has this impacted Greggs at all? If so, where are the shortages and how have they impacted Greggs?
11.
Which key food-to-go players may have fared better than the rest? What tactics have been used by the more successful players?
12.
Could you give a brief overview of the competitive landscape in the food-to-go segment and where Greggs fits into that overall market since the lifting of restrictions?
13.
A few small independent players have dropped out of the market. Do you think this provides an opportunity for Greggs to expand its footprint, especially in bigger cities? Do you think this is a strategy it might not want to pursue, given how the working environment has changed with commuters not returning to the city for work on a permanent basis?
14.
Do you think 3,000 stores is a realistic and adequate figure for Greggs? Do you think that might be too saturated or can the company go further?
15.
Do you think there is still potential for Greggs’ coffee offering? Do you think the company is doing enough on the coffee side? Is there potential for it to build this out further?
16.
What do you make of Greggs’ tie-up with Iceland? What does this do for the company’s top-line growth, margins and customer perception?
17.
Do you think the move to online and order-based delivery is a viable strategy for Greggs? Around 8% of its sales are currently represented through that digital channel. How do you expect that percentage to evolve?
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