Are you thinking about opening a bakery in the UK with a trusted and beloved brand? Greggs might be just the opportunity you’re looking for.
In 2025, Greggs remains one of the most recognised bakery chains in the UK. With over 2,050 shops and a massive fan base, it’s no surprise that many entrepreneurs are eager to explore Greggs franchise opportunities.
But before you invest, you probably have a few key questions:
- How much does a Greggs franchise cost in the UK?
- What does the investment include?
- Is Greggs even a franchise in the traditional sense?
This comprehensive guide will walk you through everything you need to know about starting a Greggs franchise in 2025, including costs, eligibility, profit potential, how to apply, and how Greggs compares to top competitors like McDonald’s, Subway, and Starbucks.
Understanding the Greggs Business Model in 2025
Greggs is not a traditional franchise in the sense of selling licenses to individuals to open single units. Instead, it offers a franchise partnership model designed for corporate operators or experienced entrepreneurs with the capability to develop multiple stores, usually a minimum of 10.
Greggs has adopted this model to ensure consistency in service quality, brand standards, and operational control across its locations. It’s also a strategic move that allows the company to expand into locations that would be difficult to manage through company-owned operations, such as:
- Service stations
- Forecourts
- Travel hubs
- College campuses
In these settings, franchise partners take on the day-to-day operation of the store while Greggs provides the products, branding, and ongoing support.
“We work with experienced operators who know how to deliver great customer service. These partnerships allow us to reach more people in more places while maintaining the Greggs standard.” – Greggs Business Development Manager
A Closer Look at Greggs’ History and Growth
The story of Greggs began in 1939 when John Gregg started delivering fresh bread and baked goods to local communities in Tyneside. The first physical Greggs shop opened in 1951 in Gosforth, Newcastle upon Tyne. After John’s death in 1964, his sons Ian and Colin took over and set their sights on transforming the business into a national brand.
Through a combination of organic growth and strategic acquisitions, Greggs rapidly expanded across the UK. By 2019, it had over 2,050 locations and had established itself as one of the most successful food brands in the country. That same year, the company’s revenues rose by 13% to £1.17 billion, and profits surged by 27%.
In 2025, Greggs continues to thrive. It has expanded its franchise operations to over 300 units and continues to innovate with new menu offerings, vegan products, healthier options, and digital ordering through its app.
How Does a Greggs Franchise Work?
The Greggs franchise model is designed as a strategic partnership, not a traditional franchise setup where anyone can purchase rights to open a single shop. Greggs selects franchise partners based on operational capability, financial strength, and the ability to scale across multiple sites.
These franchisees are typically experienced operators in retail, food service, or convenience sectors who already have the infrastructure and teams in place to manage multi-unit rollouts.
Operational Model
Franchise partners manage the day-to-day running of each outlet while Greggs provides centralised support, ensuring consistency across the entire network. The stores function like Greggs company-owned locations, using the same supply chain, menu offerings, point-of-sale systems, and branding.
Once a franchise agreement is signed, the partner gains access to Greggs’ tried-and-tested operational systems, including:
- Shop layout and design guidance, ensuring the outlet reflects Greggs’ brand image
- Training for all staff members, including managers and frontline workers
- Ongoing operational support from Greggs’ regional and national teams
- Access to Greggs’ centralised supply chain, ensuring freshness, consistency, and reliable delivery of all bakery products and ingredients
- Brand marketing support, including seasonal campaigns, new product launches, and digital promotions through the Greggs app and loyalty programme
The stores operate during regular trading hours, typically from early morning to early evening. Some shops, particularly those in service stations or transport hubs, may have extended hours to accommodate commuter traffic.
Key Responsibilities of Franchise Partners
Although Greggs offers extensive support, franchisees are responsible for:
- Hiring and managing staff
- Ensuring adherence to health and safety standards
- Overseeing local store performance
- Handling financial operations (payroll, utilities, rent)
- Maintaining customer service standards in line with Greggs’ policies
This model allows the franchisee to retain a degree of autonomy while benefiting from the structure, reputation, and operational systems of a major UK brand.
“We didn’t have to reinvent anything. Greggs gave us a full operational playbook, which meant we could hit the ground running and focus on growing our locations.”
— Franchise Partner, Transport Hub Operator
Greggs Franchise Cost Breakdown
When assessing the financial feasibility of launching a Greggs franchise, it’s crucial to understand all associated costs not just the headline franchise fee. Below is a comprehensive breakdown of the typical investment range required to open a single Greggs location under their franchise partnership model.
| Cost Category | Details | Estimated Amount |
|---|---|---|
| Initial Franchise Fee | Grants rights to operate under the Greggs brand | £25,000 – £30,000 |
| Store Build & Shopfitting | Includes layout, design, fixtures, furnishings | £120,000 – £180,000 |
| Bakery Equipment | Ovens, kitchen units, point-of-sale systems | £100,000 – £150,000 |
| Stock & Opening Inventory | Ingredients, packaging, food stock | £20,000 – £30,000 |
| Training & Support | Onboarding and operational training | £5,000 – £7,500 |
| Working Capital | For salaries, utilities, rent, and other early-stage costs | £40,000 – £60,000 |
| Total Investment | £260,000 – £390,000 |
This investment is for one store, but Greggs expects its franchise partners to open multiple units, often as part of a multi-year expansion agreement. Some partners begin with 2–3 stores in the first year and scale to 10+ stores over time.
Additional Financial Commitments
After the initial investment, franchisees must also account for:
- Royalty Fees: Approximately 6% of gross monthly sales, paid to Greggs
- Marketing Contribution: Around 2% of gross sales, which supports national advertising and digital outreach
- Rent and Utilities: Depending on location, this can significantly affect operating costs
- Employee Wages and Staff Training: Variable depending on region and store size
- Ongoing Stock Purchases: From Greggs’ centralised supply and distribution network
These operating expenses will affect cash flow and profitability, so it’s vital to incorporate them into your financial planning.
Ongoing Franchise Fees and Operating Costs
Once the store is operational, franchisees must factor in regular expenses that will affect profitability:
- Royalty Fee: Typically around 6% of gross monthly sales
- Marketing Fund Contribution: Around 2% of gross sales, used for national advertising and digital promotions
- Product Purchases: Ingredients and baked goods are supplied through Greggs’ distribution system and charged to the franchise
- Overheads: Including rent, staff wages, energy bills, insurance, and maintenance
Managing these costs effectively is essential to maintaining a healthy profit margin.
What’s Included in Your Franchise Investment?
Opening a Greggs franchise offers far more than just access to the brand name. The investment includes a complete support package designed to help franchise partners succeed from day one.
Included Services and Support
- Full shopfitting and design assistance based on Greggs’ brand specifications
- Comprehensive training programmes for management and front-line staff
- Access to Greggs’ centralised supply chain, ensuring consistent product quality
- Technology and POS systems that integrate with Greggs’ infrastructure
- Marketing and promotional materials for local and national campaigns
- Operational support and regular check-ins from Greggs’ business development managers
“Greggs gave us all the tools we needed to hit the ground running. Their training and support were outstanding from the very beginning.” – Greggs Franchise Partner (Anonymous)
Profit Potential and Return on Investment
Profitability varies depending on several factors including store location, operating efficiency, and local competition. However, based on data from existing franchise partners, the potential earnings from a well-run store are significant.
| Financial Metric | Estimated Range |
|---|---|
| Annual Net Profit | £60,000 – £100,000 |
| Profit Margin | 10% – 20% of gross sales |
| Return on Investment (ROI) | Typically within 5 – 7 years |
Stores located in busy high-street areas, service stations, or transport hubs tend to perform best, benefiting from high footfall and commuter traffic.
How to Apply for a Greggs Franchise?
Applying for a Greggs franchise isn’t as simple as filling out an online form and waiting for a green light. The company follows a rigorous selection process, designed to ensure that only qualified, capable, and committed partners are brought into the Greggs network.
Initial Expression of Interest
- Interested parties must submit a formal enquiry through the Greggs corporate website.
- This form gathers basic information about your business background, experience, and proposed areas of operation.
Preliminary Assessment
- Greggs’ franchise development team reviews your submission to determine if you meet their initial criteria (financial, operational, strategic fit).
- If your proposal meets the minimum standards, you’ll be invited to move to the next phase.
Discovery Meetings
- You’ll attend one or more meetings with Greggs’ franchise team, where you’ll learn about the franchise model in depth.
- Greggs will assess your long-term goals, operational experience, and ability to scale.
Submission of Business Plan
- You will be required to prepare a detailed business plan.
- This includes your strategy for location selection, staffing, management, financing, growth, and quality control.
Location Planning and Feasibility
- Greggs will work with you to identify viable store locations or evaluate locations you propose.
- They’ll conduct feasibility studies and footfall analysis to ensure the site can support a Greggs outlet.
Financial Vetting and Due Diligence
- You’ll be asked to provide documentation proving your financial capacity, including bank statements, net worth summaries, and investment sources.
- Greggs performs a thorough background and credit check.
Franchise Agreement and Training
- Once approved, you’ll sign a multi-unit franchise agreement outlining your responsibilities, expansion timelines, and brand expectations.
- After signing, you and your team will attend a structured training programme that includes business operations, compliance, HR, customer service, and food safety.
Store Setup and Launch
- Greggs helps manage shopfitting, equipment installation, staff onboarding, and pre-launch marketing.
- A business development manager will be assigned to you for post-launch support and ongoing performance monitoring.
Timeline
The entire process from initial contact to opening your first store, generally takes 6 to 12 months, depending on:
- Site availability and lease negotiations
- Business plan approval
- Construction timelines
- Training schedules
- Staff recruitment and setup
“Greggs took the time to understand our business goals. They weren’t just looking for capital, they wanted to make sure our values aligned with theirs.”
— Franchise Development Candidate, 2023
Comparing Greggs to Other Major Food Franchises
If you’re still weighing your options, the table below provides a clear comparison of Greggs with some of the most popular food franchises in the UK.
| Franchise | Initial Cost | Liquid Capital Required | Royalty Fees | Estimated ROI | Payback Period |
|---|---|---|---|---|---|
| Greggs | £260K – £390K | £100K+ | 6% + 2% advertising | 10% – 20% | 5 – 7 years |
| McDonald’s | £800K+ | £150K+ | Royalties + marketing | 15% – 20% | 3 – 5 years |
| Subway | £80K – £225K | Varies | 8% + 4.5% marketing | 10% – 15% | 5 – 7 years |
| Starbucks | £500K+ | £500K | Royalties + support fees | 10% – 15% | 6 – 8 years |
Greggs sits in the mid-range investment bracket, offering lower startup costs than McDonald’s and Starbucks, but with significantly more infrastructure and brand support than Subway.
Why Choose Greggs in 2025?
Few brands hold the kind of affection and loyalty that Greggs does in the UK. From commuters grabbing a bacon roll on the go, to families treating themselves to sweet pastries on the weekend, Greggs has entrenched itself in the British lifestyle.
With a continually evolving menu that caters to both traditional and health-conscious consumers, Greggs continues to grow its market share.
For serious business owners looking for a scalable, recognised, and supportive franchise opportunity in the UK, Greggs stands out as a reliable investment.
FAQ
Can You Buy a Greggs Franchise in the UK?
Yes, but only through a corporate franchise partnership. Greggs does not offer individual single-store franchises.
What Is the Greggs Franchise Profit Margin?
Typical margins range from 10% to 20%, depending on location and operational performance.
How Much Can You Earn With a Greggs Franchise?
A well-run store can yield £60,000 to £100,000 in net profit per year.
Do I Need Food Industry Experience?
While not required, prior experience in hospitality or retail is a significant advantage.
How Many Stores Do I Need to Commit To?
Greggs expects partners to open at least 10 stores over a phased schedule.
Can I Choose My Store’s Location?
Greggs will present approved sites, but you can propose a location for evaluation.
How Long Until I See a Return?
Most partners reach break-even within 5 to 7 years.
