AS the recession continued to bite hard, even high street baker Greggs eventually found the squeeze too tough to swallow.

Previously impervious to the downturn, the popular Newcastle-based pie and pasty maker finally admitted defeat last year, issuing its first profits warning for five years as shoppers turned away from its stores.

Successive reports followed, with each carrying an obvious degree of caution.

Greggs’ once seemingly relentless high store openings were scaled back, as movement into new territory of outlets closer to workers’ bases and motorway stations with Moto and Euro Garages became intrinsic to plans.

Bosses also warned its fresh bread range could be usurped by increased savoury products, sandwiches and pizzas to attract higher passing convenience sales in the £6bn food-on-the-go market.

That was followed by further plans in January this year to axe more than 400 posts, with 300 jobs across its in-store bakeries and 110 management positions affected as it absorbed work into its regional bakery network.

Gradually, however, the company, founded in the 1930s when John Robson Gregg sold eggs and yeast from his bicycle, says the changes are delivering change.

The firm, which has almost 1,700 outlets, this week revealed total yearly sales are 3.5 per cent higher, with like-for-like sales up 5.4 per cent for the 11 weeks to September 13, helped by its healthy sandwiches and coffee range.

Roger Whiteside, Gregg’s chief executive, who took over from Ken McMeikan in February last year, is the man overseeing the shift.

The former Marks and Spencer food halls boss carried out a full review of its products and operations, which included moving its stand-alone Greggs Moment coffee shop chain back into the main business.

So how does he view its progress?

He said: “Our results are encouraging because it shows that it is not just about the weather but about the initiatives we have taken.

“From August last year, we have been on an unbroken run of like-for-like sales growth.

“The food-on-the-go side of things has surpassed our expectations and it’s very encouraging to see how some of the changes have taken hold.

“We are building a better platform to take things on from here.

“We thought that the changes to the in-store bakeries would take us longer than they have.

“Those bakeries were dotted around the country but closing them has helped the business.

“Some of the workers have been deployed elsewhere in the company because they are experienced people in their trade and we have helped other find employment elsewhere.

“That is the price we have had to pay for taking the right economic decision.”

With Greggs easing store openings - 32 new outlets contrasted against 42 closures in the latest 11-week period - some customers may worry the company is contemplating abandoning its cherished position on the high street.

However, Mr Whiteside revealed it has no such plans, and also confirmed proposals revealed earlier this year by The Northern Echo that the firm is looking to expand into Cornish pasty heartland.

He said: “The high street is the most important part of the business, but we are also looking at other areas, such as office parks, retail parks and industrial estates.

“That’s where our relationship with Moto and Euro Garages comes in, and they are doing very well, though we are still looking to grow in that area.

“The South-West is another area.

“We know there are no Greggs in Devon, however, the problem is getting supplies down there.”

So what will the company look like moving forward, as it bids to continue attracting customers’ appetite for the convenience market.

Mr Whiteside added: “We have a unique position in that we make our own sandwiches fresh every day, which is very important for customers.

“The food-on-the-go-market is worth £6bn and while we have defended our position as the leading retail bakery business, existing competitors have rapidly expanded shop numbers and better met customer demands.

“Traditional products like bread used to be over half of our sales, it is less than that now, but if there is still demand we will still bake it.

“What we are trying to do is build on our baking credentials and use our heritage to our advantage.”