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GREGGS LOOKS SET TO WIN COFFEE WARS

Added: (Wed Nov 22 2000)

Pressbox (Press Release) - GREGGS LOOKS SET TO WIN COFFEE WARS

As the cost of a cup of coffee continues to rise, Greggs, the largest specialist sandwich, savoury and bakery related retailer in the UK, has come out fighting in the latest round of ‘coffee wars’. With a latte, cappuccino or mocha now at an affordable 85p a cup, Greggs looks as if it has blown a hole in its competitors’ price defences.

Greggs is spearheading its value coffee campaign in London’s Square Mile with its recently opened, newly designed Eastcheap shop. The pricing structure reflects Greggs permanent nationwide aggressive pricing policy.

Eastcheap has exceeded all expectations in its first few weeks of trading, and customers keep coming back for special offers such as a ‘fresh from the bean’ Coffee and a Croissant for £1.25, a price that leaves nearby competition standing.

As a bullish Andrew Savage, Managing Director of Greggs (Twickenham) states, “We can make good money at 85p for a coffee and 40p for a croissant.” Commenting on the cost of coffee sold by their high street competitors, he added “they obviously need to charge those prices, we don’t.”

A recent sampling exercise of the major coffee shop groups shows how you don’t necessarily get what you pay for:

THE COST OF A COFFEE & CROISSANT
Costa
Cost of 12oz latte - £1.70
Cost of croissant - £1.00
Total Cost - £2.45
Coffee - Creamy, frothy, good temperature. Same price to take away as drink in.
Croissant - Dry and old looking, but soft inside.
Time spent queuing - Less than 30 secs
Level of Service (max 5 points) - 4
Time of day sample taken - 8.45am

Coffee Republic
Cost of 12oz latte - £1.60
Cost of croissant - £1.10
Total Cost - £2.45
Coffee - Tasted lovely, but not very aromatic, v milky and not v hot
Croissant - Slightly warm, fresh tasting, crispy outside.
Time spent queuing - 3 minutes
Level of Service (max 5 points) - 3
Time of day sample taken - 9.05am

Greggs
Cost of 12oz latte - £0.85
Cost of croissant - £0.40
Total Cost - £1.25
Coffee - Frothy, inviting, and good coffee taste although a little strong for latte
Croissant - Soft and fresh, although not very large.
Time spent queuing - Served immediately
Level of Service (max 5 points) - 3
Time of day sample taken - 9.00am

Pret a Manger
Cost of 12oz latte - £1.15 (only serve 10oz)
Cost of croissant - £0.77
Total Cost - £1.92
Coffee - Tasted of coffee, though slightly bitter, not creamy looking.
Croissant - Fresh, warm, but taste not good – as though cooked in animal fat
Time spent queuing - 3 minutes
Level of Service (max 5 points) - 2
Time of day sample taken - 8.45am

Starbucks
Cost of 12oz latte - £1.75
Cost of croissant - £1.10
Total Cost - £2.85
Coffee - Good temperature, frothy, creamy. Tasted delicious
Croissant - Big, look nice but dry inside and hard at the ends.
Time spent queuing - 2 minutes
Level of Service (max 5 points) - 2
Time of day sample taken - 9.30am

Sampling took place between 26th October – 13th November 2000 in the Central London area
November 2000

Ends

Editor’s note:
Greggs is situated at 13 Eastcheap, London EC1 and is open from Monday to Friday from 7am to 4pm.

For further information please contact Deneice Clark or Sara Milne
Greggs Press Office
at Clareville Consultancy
Tel: 020 7736 4022
Fax: 020 7736 3504
email: Deneice@clareville.co.uk

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