Wandering through town today and there are three instances where there is a Greggs bakery within about eight shops of another Greggs. Literally you could hurl a sausage roll from one and it would land in the other.
I'm sure there is a really good business reason for this, anyone got any ideas why they can afford to open so close to each other? Seems counter intuitive, but they are obviously doing really well from it.
It's simple business logic really, Barry, or it is in my view.
The nature of their shops means they have a maximum capacity, adding extra assistants does not help, they just get in each others way. The business has several "rush periods" (on the way to work, mid-morning, lunchtime, mid-afternoon, on the way home from work, before/after going out for ther evening), & in between those periods, is relatively quiet, so extra staff is a bit of an expensive solution.
Entry costs to the sarny/sausage roll shop market are very small - anyone can set up a barrow, or burger-bar type place, or lease an empty shop nearby.
So Greggs develop the local market, then parasite traders nick their business.
Best answer is to open several shops close to each other = bugger off parasite traders.
I must say, I think they are a wonderful Business, they have effectively created a market, & are now serving it well. In my eyes, they are nearly up there with GB & Ireland's Greatest Business. They are SO successful, the haters are on their case. And that is seriously successful.
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