Starting a Gregg franchise can be an exciting and profitable venture, especially considering the brand’s strong reputation and loyal customer base across the United Kingdom.
Gregg is one of the leading bakery and food-to-go brands in the UK. In recent years, the brand significantly boosted its presence through strategic franchising partnerships.
If you are an entrepreneur looking to join this business, this guide will walk you through the essential requirements for starting your franchise successfully.
From understanding the primary investment to meeting personal and operational qualifications, we are here to discuss everything to clear all your queries.
The History of Greggs
John Gregg founded “Greggs” in 1951 with his first bakery shop on Gosforth High Street, Newcastle.
However, it was the first physical location of the brand, but its roots can be traced even further back, to 1939, when Gregg started his door-to-door bakery service.
The company gained popularity during the 1970s, and it was during this time that the brand began acquiring other bakeries.
Gregg developed a great reputation for offering good quality and value. The brand later expanded across Scotland, Yorkshire, and the North West of the UK.
The most iconic transition of the brand was when it was converted from being a bakery business into a ‘food on the go’ operation. This transition later proved to be the right decision, and the business has boomed ever since.
Since 2012, Gregg’s has been franchising, and now the brand has over 500 franchise outlets across the UK. It has almost 2,500 locations, including both franchised and corporate across the UK.
Requirement for Greggs Franchise
Gregg Frnachise Investment Costs
The most critical aspect of becoming a Gregg franchise is understanding the financial requirements. This business model includes several key components:
1. Franchise Fee: It is an upfront payment that allows you to operate a Gregg outlet under its popular brand name. The initial franchise fee is around 25,000 to 30,000 pounds. This fee usually includes initial training and ongoing support from the franchisor.
2. Initial Setup Cost: Apart from the franchise fee, this business model includes an additional setup cost to get the store ready. You have to purchase, rent, or lease one premises for the outlet, renovation, and fit-out costs, all included in the initial costs. You have to set up the outlet in such a way that it can meet the Gregg outlet standard. You may require some additional elements, including ovens, refrigerators, and display counters.
3. Working Capital: The Gregg franchise costs include adequate working capital. You should have arranged some cash in your hand to cover all the day-to-day operational expenses, such as salaries, inventory, and utilities. You will require working capital, especially during the initial months when revenues are still growing.
Locations and Property Consideration Regarding Gregg Franchise
When you are about to start a Gregg franchise outlet, choosing the right location is crucial. The ideal location must meet the following criteria:
1. High Foot Traffic: Gregg Outlets are doing amazing in their areas with high foot traffic, such as city centres, shopping centres, transport hubs, and more. People can easily access these areas, and you can expect a vast amount of new and returning customers daily.
2. Good Visibility and Accessibility: The site must be visible from the main road and accessible to pedestrians and vehicles. It would be good if there were adequate car parking facilities.
3. Size and Layout: The outlet premises should be commodious enough so that people can feel its breathability. Further, you have to accommodate several necessary pieces of equipment and a layout for offering better customer service.
Requirement of Qualifications and Experience
Though Gregg does not have a specific professional and educational background to start the Gregg franchise. However, Gregg prefers the following skills and experience among the applicants:
1. Industry Experience: Although it is not a mandatory requirement, Gregg does favour the applicants with a background in retail, food service, or hospitality. Acquiring these experiences helps you navigate all the challenges to run a fast-paced food outlet.
2. Business Enthusiasm and Passion: A strong grasp of business operations, financial management, and customer service makes your day-to-day business handling much easier. Gregg prefers the business enthusiasts who are passionate about the brand and eager to uplift the brand value further.
3. Commitment to Training: Any new Gregg franchise should undergo a few days of training workshop provided by the brand to ensure you are well-prepared to handle daily operations effectively.
4. Individual Qualities: Attributes like leadership, decision-making, and excellent communication skills are crucial to manage a team for your business. The individual having all these qualities is surely capable of managing the Gregg franchise outlet successfully.
How does the Gregg Franchise Model Work?
The Gregg brand works with several franxchise partner in locations where it can’t manage a company-managed outlet.
These include motorway services, educational establishments, petrol stations, and smaller high street convenience sites. Gregg started its franchise business in 2012 in the UK, and it was when it sogned multi unit agreement with Moto.
Gregg does not operate similarly to traditional franchise brands such as McDonald’s, Subway, and more. Generally, Gregg partners with experienced food service operators, not individual newbies.
All the franchise partners must follow strict Gregg guidelines, including store setup, food preparation, and customer service.
Franchise partners initially have to pay an initial setup or agreement fee. In return, the partners will have the authority to access the trusted national brand name and marketing and promotional support from Gregg.
Gregg runs frequent marketing campaigns throughout the nation, so the franchise partners automatically benefit from brand advertising.
How Much Profit Can You Make from a Gregg Franchise?
It is not easy to say how much you can earn from the Gregg franchise, as it depends on several factors. Though an exact profit figure is not revealed publicly, several food and beverage franchises opt for a 15-25% return on investment annually. Profitability depends on location, customer demand, operational cost, and new product launches.
Over the past 10 years, Gregg has achieved a revenue and CAGR (operating income compound annual growth rate) of 9% and 15.3%, respectively. This achievement is considered a commercial smash hit.
It is notable that with potential growth rate and increased brand awareness, franchise store profit rate can also be boosted. Revenue per store can be significant, but it can be assumed that a busy Gregg outlet will generate hundreds of thousands of pounds within a year.
You should remember that no franchise partner can take all the money to their home as the brand maintains tight control over pricing, supply, and branding.
Conclusion
Gregg is a well-established, forward-thinking brand with massive customer appeal. So, starting a Gregg franchise in the UK is less about investing money and more about becoming a partner with a strategic mentor.
Gregg always prioritises quality, excellence, and consistency, and you must understand that it is not a typical franchise model.
However, opportunities are fewer as the brand emphasize on experience food service operators and carefully selected locations. However, Gregg’s franchise success fully depends on your expertise, preparation, and patience.
If you can meet the brand’s expectations and operate at scale, the Gregg franchise can be a rewarding venture in the UK’s competitive bakery market.
