A one-time payment was made as a reward for each team member for a breakthrough in the innovative meat imitation market.
British bakery chain Greggs said that after «phenomenal year» thousands of employees will receive a one-time payment of £ 300.
Sales were boosted by strong demand for traditional snacks and «now iconic» Greggs vegan sausages, the company said.
About 19,000 employees who came to work in Greggs until April last year, will receive £ 300 each, and the remaining 6,000 will receive £ 75 for each quarter of employment with the company..
The company said a one-time payment has been made «in recognition of their critical contributions to business success».
The massive success of the vegan Greggs roll was one of the most notable PR triumphs of the past year. Lively social media debate ensured the success of the new product.
Greggs no doubt can hope the new non-meat meat casserole launched last week also becomes a favorite with shoppers.
While vegan launches have generated huge consumer interest, Greggs’ success has been underpinned by a broader strategy of transforming itself from a traditional bakery into a modern food chain offering a range of products including salads and coffees..
Greggs estimates like-for-like sales up 9.2% in 2019, raising earnings forecasts for the third time in two months.
Baseline pre-tax profit projected to be above expectations based on March fiscal year results.
The lump-sum payments to staff will be in addition to the profit sharing scheme already in place at Greggs, according to a company spokesman. According to her, the bakery network shares 10% of the profits with the employees..
Greggs employees will receive £ 7m bonus after shareholders receive £ 35m special dividend in October.
«Our record financial results in 2019 allowed us to increase our return to shareholders, ”said Chief Executive Roger Whiteside. – I am delighted to announce that we will also make a special additional payment to all of our business colleagues who have worked so hard to achieve this success this phenomenal year.».
A year ago, Greggs launched a vegetarian sausage snack made with Quorn meat substitute. Its launch was followed by other initiatives such as vegan steak and vegan donut..
Employees often benefit from a profit share. Other UK retailers that have employee bonus schemes include John Lewis and Waitrose, Sainsbury&# 39; s and Sports Direct.
Maureen Hinton, director of global retail research at GlobalData, believes the employee compensation offer reflects a growing trend among companies to look ethical..
«This is a great way for Greggs to maintain employee loyalty and create a highly inclusive culture as the benefits of its success are shared with everyone, ”she commented. – It was also good PR. In what in what, and in this Greggs is excellent».
Greggs, like other retailers, will face higher costs in 2020 due to higher national living wages and higher pork prices..
Greggs opened 138 new stores over the past year and closed 41, bringing the total UK-wide to 2,050. The company plans to open around 100 new stores in 2020..