British bakery giant Greggs is set to open its first overseas outlet in almost two decades at Tenerife South airport later this month, as the company also warned that tensions linked to the Iran conflict could push costs higher into 2027.
The popular bakery chain said the new shop, located in the airport’s international departures area, would become its first and only international branch, marking a return to overseas operations after it closed a small loss-making business in Belgium in 2008.
Greggs described Tenerife as ‘the ideal location to test spreading our wings in an overseas setting’, with Tenerife South handling millions of British and international passengers every year. Around half of the airport’s passengers travel to and from the UK.
The new branch will offer Greggs favourites including bakes, sausage rolls, sweet treats and freshly-made sandwiches, while also introducing products tailored to local tastes. These include a Spanish Omelette Roll on the breakfast menu, alongside freshly squeezed orange juice prepared and bottled daily in-store, which the company said would be ‘giving customers a refreshing taste of island life’.
The outlet will also include seating for up to 92 customers, with Greggs saying the airport location offered travellers ‘the perfect way to round off a trip without breaking the bank’.
Roisin Currie, Greggs chief executive, said: ‘Tenerife South Airport is a hub for millions of UK and international passengers each year, making it the ideal location to test spreading our wings in an overseas setting.’
‘It’s an exciting milestone for Greggs as we bring a slice of home to the Canaries, and we’re confident our great-value offering will resonate just as well under the Spanish sun as it does on the UK high street,’ she added.
Currie stressed the Tenerife launch was being viewed as a trial, but suggested further international expansion could follow if successful, saying there ‘might be other conversations to be had about other opportunities’.
The store is opening through a partnership with Lagardere Travel Retail, which operates more than 5,000 stores across airports, railway stations and travel hubs in more than 50 countries.
Javier Cagigal, chief executive of Lagardere Travel Retail Spain and Portugal, said: ‘We’re delighted to partner with Greggs to bring such a well-loved brand into Tenerife South Airport for the very first time.’
‘As passengers head home, this new opening gives them a familiar, comforting choice in departures – whether that’s a last treat, a relaxed sit-down moment or something to ease the journey home,’ he said.
The overseas expansion announcement came as Greggs revealed another round of price increases and cautioned that geopolitical instability linked to the Iran war could increase inflationary pressures well into next year.
The FTSE 250 company said some meal deals had already risen in price, including its breakfast offer of a roll and drink, which has increased from £3.15 to £3.25 after previously rising from £2.95 in October.
Greggs said it currently expects costs to rise by around 3% this year, warning that prolonged tensions in Iran could lead to ‘higher overall cost inflation through the end of 2026 and into 2027’.
Currie said the company had taken measures to limit the impact, including hedging around five months of food costs and 85% of this year’s energy costs. Based on current forecasts, she said there were no plans for additional price rises this year.
The bakery chain, which now operates 2,759 shops across the UK, also reported that sales growth had accelerated to 3.3% over its most recent 10 weeks of trading.
Greggs opened 41 new stores during the period, including 17 franchised locations, while closing 21 sites. The company said it remained on track to open 120 new shops during the current financial year and still sees long-term potential for more than 3,000 outlets nationwide.
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