How Geordie baker who sold yeast door-to-door created £1billion Greggs empire

0
42
How Geordie baker who sold yeast door-to-door created £1billion Greggs empire



JUST like the pastry on its beloved bakes, Greggs’ profits keep on rising in its rags-to-riches story.
It was announced this week that the high street favourite’s annual turnover topped £1BILLION for the first time in 2018 — not bad for what began as one bloke on his bike delivering yeast and eggs to miners’ wives on Tyneside.
Greggs First bakery store, ‘Greggs of Gosforth’ (named after the area of Newcastle), opened in 1951
It now employs more than 20,000 staff and feeds many, many more mouths as it bucks the trend of today’s retail doom and gloom.
Thanks to its purse-friendly, scrummy steak bakes, cupcakes and sausage rolls — it now even sells vegan ones — Greggs is a British institution and on a very tasty roll.
Yet it was all cooked up from humble beginnings.
In 1939, founder John “Jack” Gregg started touring Tyneside on his bike selling the ingredients for locals to do their own baking.
He soon swapped the bike for a van, but then left wife Elsie to do the rounds while he was away serving in World War Two.
By 1951 he had hit the high street, opening his first shop, Greggs of Gosforth, named after the area of Newcastle. With a bakery at the back, he was able to make, bake and sell fresh bread and other treats.
‘Many branches now open until late into the night’
Customers flocked in, and in 1953 the shop made a profit of £69, 15 shillings and sixpence — about £69.77 and the equivalent to just shy of two grand today.
Despite his shop’s popularity, though, Jack did not want his two sons to follow him into the baking game — and worked to give them the best education.
But in 1963, Jack fell ill. He died the next year from lung cancer, aged 55.
His son Ian, a solicitor, after studying law and classics at Cambridge University, defied his dad’s wishes and quit to take over the business.
PA:Press Association Greggs chief executive, Roger Whiteside, stands outside one of the 1,850 Greggs bakeries across the UK
It was Ian who masterminded the firm’s expansion — and one of his masterstrokes was to install small ovens at the back of the shop, the sights and smells luring customers, while keeping heavy baking off site.
Ian said of taking over the house that Jack built: “I think one of the big benefits was, I didn’t know anything about business or baking. I came with a fresh mind and listened carefully to what other people said.”
It proved a recipe for huge success — and the creation of the high street’s leading baker.
He opened more and more shops across the North East, Yorkshire, Manchester and Scotland. Within a decade, Greggs’ annual turnover rocketed from £100,000 to more than £5million.
Hulton Archive – Getty Ian Baker took over his father’s bakery after the founder died from lung cancer in 1963
By 1983, it had 300 bakeries, and a year later was listed on the Stock Exchange. Greggs’ turnover continued to rise over the next decade, reaching £50million in the Nineties.
The success has not been without scandal, though. Two years ago, Ian’s brother Colin — who seems to have had limited involvement in the business — was jailed for more than 13 years for a sex offences against boys dating back to 1963 when he was working as a teacher.
In 2012, Greggs also faced financial trouble in the shape of government plans to slap 20 per cent VAT on hot, freshly-baked takeaway foods.
But such is the public’s devotion to the firm, it sparked a huge backlash and The Sun launched a Who VAT All the Pies campaign to demand the tax be scrapped. Page 3 Girl Rhian delivered a 500,000-name petition to Downing Street.
Greggs A popular Greggs bakery in the 1980s. By 1983, Greggs had over 300 bakeries and just a year later was listed on the Stock Exchange
The then Chancellor, George Osborne, duly U-turned — saying he had “listened to Sun readers”. He revised the plan so the tax would be charged only on cooked pies and pasties that were kept hot, but not those still warm after coming from the oven.
What Mr Osborne realised is that the nation just cannot get enough of Greggs. Many branches now open into the night — one in Newcastle even has its own bouncer at weekends.
In 2013 a Sky TV documentary about the business, Greggs: More Than Meats The Pie, drew 1.27million viewers.
INSTA MAM New mum turned her Instagram account into £250,000 business ExclusiveGRIEF ENCOUNTER Funeral providers charging £2,400 MORE for same service just miles apart BACK FOR GOOD? BHS is coming back to British high streets – but there’s a catch ExclusiveMONEY BURNER Lads turn candle making hobby into a business and now make £74,000 a year HIGH STREET BLOW LK Bennett to file for administration putting 500 jobs at risk
Today there are more than 1,850 stores in the UK — more than McDonald’s or Starbucks — and chief executive Roger Whiteside aims to take this figure beyond 2,000.
But while Greggs has moved with the times — the launch of its vegan sausage roll this year has helped to boost profits — the chain has stayed true to its roots.
North News and Pictures Greggs the Bakers, David Parker, retail operations director (left), Mike Darrigton (middle), and Malcolm Simpson, financial director (right)
In the North East it serves local delicacy ham-and-pease pudding stotties.
No one is more surprised by the success than reluctant entrepreneur Ian, who retired as chairman in 2002 but remains a shareholder.
He says: “I set out at 25 with a view to running a small business in Newcastle — but it just took off.”

We pay for your stories! Do you have a story for The Sun Online Money team? Email us at money@the-sun.co.uk or call 0207 78 24516. Don’t forget to join the Sun Money’s Facebook group for the latest bargains and money-saving advice.

How isolated new mum turned her Instagram account into business Me & Orla

LEAVE A REPLY

Please enter your comment!
Please enter your name here