Greggs at Leeds station - premium prices

[johntea]

I went to the Greggs in the station today for a meal deal but quickly changed my mind when I saw the price was 20% more expensive than a normal Greggs! (I just walked to the Boar Lane one instead!)

I’m more than happy to pay slightly more for convenience but a 20% uplift on top of the ‘normal’ Greggs prices (which have also crept up in recent times anyway!) seemed rather steep

It seems the rest of the general public don’t notice and/or don’t care though as there was a healthy queue of customers!

Also not sure what the delay is with getting the front sorted is considering there were exactly 0 people busy working on the last minute bits and pieces

 

[Iskra]

I went to the Greggs in the station today for a meal deal but quickly changed my mind when I saw the price was 20% more expensive than a normal Greggs! (I just walked to the Boar Lane one instead!)

I’m more than happy to pay slightly more for convenience but a 20% uplift on top of the ‘normal’ Greggs prices (which have also crept up in recent times anyway!) seemed rather steep

It seems the rest of the general public don’t notice and/or don’t care though as there was a healthy queue of customers!

Also not sure what the delay is with getting the front sorted is considering there were exactly 0 people busy working on the last minute bits and pieces

The delay seems to be the lift at the front, as when I last looked there was a gaping hole where the lift is meant to go. One thing that is a bit daft is that rather than providing bins in the new area, they just have a cleaner going round the area permanently.

I just pay the ‘Greggs tax’ as it’s cheaper than most other places in the station and it’s convenient.

 

[Killingworth]

I just pay the ‘Greggs tax’ as it’s cheaper than most other places in the station and it’s convenient.

As an aside I recently discovered Greggs station outlets are franchised to SSP Group so your card transaction probably shows their name not Greggs. They spcialise in providing food outlets in transport hub captive markets. See; https://www.foodtravelexperts.com/what-we-do/

 

[speedy1]

I'm so cheap I'll walk to the Pret on Infirmary St to save 20p on the filter coffee

Good value at Leeds station :

- Pret filter £1.20
- Wetherspoons coffee (£1.80?), £2.50 Stowfords Press
- Greggs wedges
- Sainsburys
- McDonald's saver items (can't recall a markup)

 

[Djgr]

As an aside I recently discovered Greggs station outlets are franchised to SSP Group so your card transaction probably shows their name not Greggs. They spcialise in providing food outlets in transport hub captive markets. See; https://www.foodtravelexperts.com/what-we-do/

Captive of course being the operative word.

 

[Bald Rick]

Proper Yorkshire thread this.

 

[Kite159]

It's not just at Leeds station where the Greggs franchise charges a premium, it's most stations which have a Greggs franchise. See also Boots (they used to charge the same for a meal deal as they did on the high street outside London, but they changed it a while back so the station outlets charge more)

At least Leeds has the Sainsbury's Local on the station with a Tesco Express & Co-op reasonably close by

 

[EYFanatic]

It's not just at Leeds station where the Greggs franchise charges a premium, it's most stations which have a Greggs franchise

A notable exception is the one at Hull Paragon which is operated directly by Greggs as its on the bus station side of things

 

[Spartacus]

A notable exception is the one at Hull Paragon which is operated directly by Greggs as its on the bus station side of things

I wonder if Bradford Interchange is the same then?

Speaking of the Greggs at Leeds, the other week I decided as I'd enough time between trains I'd get myself a breakfast sandwich from Wetherspoons instead as that was looking quiet, made a good choice.

No matter what the mark up nothing's quite as bad as snacks on a station WH Smiths; even airport ones are cheaper!

 

[Bletchleyite]

Isn't the reason for the markup that Network Rail take a cut?

 

[Iskra]

Isn't the reason for the markup that Network Rail take a cut?

I doubt they directly take a cut, but the rents are likely to be at a premium so they benefit that way.

 

[pokemonsuper9]

It seems the rest of the general public don’t notice and/or don’t care though as there was a healthy queue of customers!

It's the convenience
I've had Greggs in Leeds a couple times, depending on how long my connection is decides which I'll use (obviously wanting to use the cheaper on if I have the time)

It's also notable that station outlets are usually open later, while most street Greggs close in the early evening, station ones usually close closer to 9pm.

 

[SuspectUsual]

Isn't the reason for the markup that Network Rail take a cut?

I suspect that Greggs would just see this as a cost of doing business rather than something specific - a quirk of that particular landlord perhaps - if it were them operating it directly, but as others have said its a franchisee so their approach will possibly be different

I *think* (from vague memory of knowing someone who worked in the franchising team when I was at the Coop) companies cannot impose price control on franchisees (I'm sure its more complicated and nuanced than that) so ultimately the franchisee is probably just charging what they think the market can bear

 

[WesternLancer]

Just 'charge what the market will bear'

If people didn't buy anything there the prices would drop, if they still didn't buy it the outlet would close. If another tenant was not in prospect the landlord might lower the rent presumably.

 

[Mcr Warrior]

I doubt they directly take a cut, but the rents are likely to be at a premium so they benefit that way.

Are you sure? My understanding is that Network Rail charge (skim off) a percentage, of a retail outlet's turnover, plus a minimum guaranteed rent, probably based on the outlet's square footage. The figures obviously vary from site to site. A nice little earner! Happy to be corrected if the afore-mentioned is not the case.

 

[HBP]

It's also notable that station outlets are usually open later, while most street Greggs close in the early evening, station ones usually close closer to 9pm.

Leeds Station shop now closes at 11.59pm on certain days per week and 10pm on others. The Bus station one closes at 9pm. Looking at the Greggs map in Leeds quite a few now open to later in the evening.

 

[SuspectUsual]

Are you sure? My understanding is that Network Rail charge (skim off) a percentage, of a retail outlet's turnover, plus a minimum guaranteed rent, probably based on the outlet's square footage. The figures obviously vary from site to site. A nice little earner! Happy to be corrected if the afore-mentioned is not the case.

NR say they "typically" take a percentage of turnover - link to the relevant document below

Our Retail Tendering Process - What You Need To Know - Network Rail Property

Learn how our retail tendering process works and how to apply successfully. Discover key steps, tips, and what it takes to secure your ideal retail space.

property.networkrail.co.uk

 

[fishwomp]

Just 'charge what the market will bear'

Which ordinarily is fine if there is a free market - because of competition.

However, when SSP are running a monopoly on stations - like the operator at motorway services - of franchised offerings, then it's not a free market.

 

[Bletchleyite]

Which ordinarily is fine if there is a free market - because of competition.

However, when SSP are running a monopoly on stations - like the operator at motorway services - of franchised offerings, then it's not a free market.

There is a free market in the sense that (a) you can go out on the street and buy there instead, and (b) at the point of tendering for the contract for this provision.

Motorway services similarly aren't a monopoly. You have a motor vehicle, you can drive it anywhere you like. Satnavving to a large supermarket just off the motorway is a good value way to get the same services. But there was a market at the time of tendering for the site.

 

[Spartacus]

Which ordinarily is fine if there is a free market - because of competition.

However, when SSP are running a monopoly on stations - like the operator at motorway services - of franchised offerings, then it's not a free market.

It's hardly a service station in the middle of nowhere, with little obvious alternative. It's in the centre of a major city. The price difference seems to be a reasonable one given the convenience.

 

[Bald Rick]

Isn't the reason for the markup that Network Rail take a cut?

I doubt they directly take a cut, but the rents are likely to be at a premium so they benefit that way.

NR usually charge a base rent plus a percentage of turnover. But this is a negotiation with the retailer, the retailer agrees to the rent level based on their forecast business.

Ultimatley, the retailer will charge customers what they can.

 

[Killingworth]

Which ordinarily is fine if there is a free market - because of competition.

However, when SSP are running a monopoly on stations - like the operator at motorway services - of franchised offerings, then it's not a free market.

SSP grew out of Upper Crust and have worked with the railway industry for a long time. Of course Network Rail want to cream as much as they can from retail space in stations and SSP seem to be successful in doing that for them.

Other operators are free to tender for the units so any apparent monopoly is likely to be because SSP understand their target markets. They have also negotiated good terms with all the franchisees they work with and can change them around if one isn't working in a particular location.

 

[Dave W]

Realistically - paying £6 instead of £5 when I've got a train to catch isn't going to force me out into the mean streets of Leeds to find a cheaper Greggs (then again, I'm not a Yorkshireman )

These mobs clearly have their market research down, so are pitching it exactly at folk like me with the above attitude - but I wonder where that threshold is for the market at large. 25%? 40%?

 

[fishwomp]

(..) Other operators are free to tender for the units so any apparent monopoly is likely to be because SSP understand their target markets.

Cinema popcorn is also fairly priced and great value. Yes?

At the point in time and location - where passengers are not free to wander into a city due to either time, accessibility or ticket - it is a monopoly.

It is irrelevant that another company could have and would have bid for the right. All bidders know they are buying a monopoly right.. you could say it is not SSP's exploiting a monopoly, but actually Network Rail.. but a monopoly still exists and has value.

My point is in response to "setting a price the market will bear" said earlier - the price is not freely set as in a true market and not benefiting from competitors.

I am not judging that, it's a fact of life.

 

[Bald Rick]

the price is not freely set as in a true market and not benefiting from competitors.

It is benefitting from competitors, ie those oustide the station.

 

[Killingworth]

At the point in time and location - where passengers are not free to wander into a city due to either time, accessibility or ticket - it is a monopoly.

It is irrelevant that another company could have and would have bid for the right. All bidders know they are buying a monopoly right.. you could say it is not SSP's exploiting a monopoly, but actually Network Rail.. but a monopoly still exists and has value.

I agree. If we delve deeply we'll find SSP are operating several outlets either directly or through franchises at railway stations. Upper Crust is fully owned. Greggs is a franchise.

By checking SSP's website It's possible to see the other names on station units that are likely to be operated by them. Some of them are very well known. What we won't easily deduce from there is which franchised operation is operated by them and not someone else. I spotted this when I saw SSP on my bank statement and realised that was a purchase I'd made at Greggs.

Because we can't easily know which of the many businesses in a location is controlled by SSP the degree of monopoly is hidden.

 

[Bletchleyite]

Because we can't easily know which of the many businesses in a location is controlled by SSP the degree of monopoly is hidden.

If you actually want to check they all have "peculiars of business" sheets on display, at least the ones at Euston. But I'm just interested in whether the product I want is on offer at a price I find acceptable, to be honest, I don't overly care who is selling it.

 

[xotGD]

This is an example of the time-cost-quality triangle. If you are short of time and want the same quality product, expect to pay more.

 

[John Griffiths]

At Newcastle there is a 'normal' Greggs right opposite the station entrance. Can have a bit of a queue sometimes.

 

[yorksrob]

I must admit, I've found greggs a bit uninspiring for a few years ago. Giving up meat hasn't helped tbh (although the veggie sausage roll is decent).

But it's not particularly good value nowadays (nothing seems to be).

A meal deal with a pastry and sandwich might be good, but they never do that.