Greggs goes traditional with a modern twist Walnut bread, green olive sticks and pasties: it's Greggs but not quite as we know it. Fresh from its victory in forcing a government climbdown on its controversial pasty tax, Britain's biggest bakery retailer has unveiled a transformational makeover blueprint for some of its 1,600 shops. Just yards from where the late John Gregg opened his first baker's shop in 1951, Greggs" present branch on the high street in Gosforth, a relatively affluent area of Newcastle upon Tyne, has been overhauled to create a "traditional" bakery shop with a modern twist. There are alluring window displays, cakes on stylish black trays, bread in wicker baskets, white tiles, a bicycle hung on the wall - a reference to Greggs" heritage - and smart black and red uniforms for the staff, some of whom prepare pizzas and sandwiches in front of customers The decor and presentation are distinctly upmarket compared with a conventional Greggs; so too are some of the 75 new product lines. These are on sale alongside stalwarts like sausage rolls and pasties, which retail at the same price acroos the chain. The row over the Budget's takeaway food VAT plans heightened perceptions of a gulf between the government's Old Etonians and Greggs" pasty-eating poorer customers. But Ken McMeiken, chief executive, insists the new format is not a reaction. The concept has been in planning for more than a year in response to customer feedback, he says. It was more about the renaissance in the UK in baking. This format offers, he says, "the theatre of bakery," with parts of the process on display. He says Greggs has three distinct kinds of unit: its "food on the go" shops; its new Greggs Moment coffee shops, a third of which has just opened in Stevenage; and its Greggs the Baker shops, which customers treat predominantly like traditional bakers, buying bread and rolls and other products to consume at home. Greggs has "some hundreds" of this third category. Crucially, many of these, for which the Gosforth makeover is the pilot, are on high streets under attack from supermarket and out-of-town competition. "Specifically in high streets we have to have it so the ambience and product makes people want a special purpose visit," says Mr McMeikan. In the last fortnight alone, two substantial north east bakery chains, Peters and Tindale & Stanton, have been forced into administration. Times are tough for everybody, says Mr McMeikan, but Greggs, as the UK largest bakery retailer, has the biggest economies of scale. In 2012, it plans to increase its net total of stores by 90 to 1,661 and refit 120. The pace of conversion to the Greggs The Bakery format will be decided at the end of 2012, depending on the success of Gosforth and other pilots. Indications on Saturday, when the refurbished shop reopened to streams of enthusiastic customers, were very positive. "They've done a cracking job," said Kevin Henderson, a builder, admiring the stone cladding as well as the food as he and his workmates bought their lunchtime pasties and sarnies. It's the same but more choice and presented better. Mr Henderson admitted he initially thought it looked "a bit posh." So could the chancellor, who famously "couldn't remember" when he last bought a Greggs" pasty, venture in here with ministerial colleagues? "They will be very welcome," smiles Mr McMeikan. This is going to be very inclusive.