Hu, I wouldn't say 2,500 is the limit but rather it is towards the higher end of number of stores it can run.
There are a few reasons. One, 15 years ago, the previous CEO stated he beloved that the upper limit was 2,000. Since then they have put more in areas like industrial parks, which has generated new growth. But there has to be a limit.
Second, they could open far more stores but it could cause cannibalisation of the existing estate like what happened with the supermarkets in the UK.
Third, they already have more stores than any other fast food type business in the UK. Double McDonald's for example, which I believe has second most
I am curious to understand what makes you believe that 2500 shops is the limit for Greg's in the UK if management invests into infrastructure for 3000 or even 3500?
Is it density/population saturation based or how to assess this situation?
Hu, I wouldn't say 2,500 is the limit but rather it is towards the higher end of number of stores it can run.
There are a few reasons. One, 15 years ago, the previous CEO stated he beloved that the upper limit was 2,000. Since then they have put more in areas like industrial parks, which has generated new growth. But there has to be a limit.
Second, they could open far more stores but it could cause cannibalisation of the existing estate like what happened with the supermarkets in the UK.
Third, they already have more stores than any other fast food type business in the UK. Double McDonald's for example, which I believe has second most
Jamie
Hi,
Thanks for the writeup
I am curious to understand what makes you believe that 2500 shops is the limit for Greg's in the UK if management invests into infrastructure for 3000 or even 3500?
Is it density/population saturation based or how to assess this situation?
Thanks in advance