UK's Greggs finds appetite for sausage rolls in the Canary Islands

By James Davey

LONDON, July 29 (Reuters) - British fast food chain Greggs' latest attempt at overseas expansion - a store at Tenerife South Airport in Spain's Canary Islands - has got off to a promising start, its boss said on Wednesday.

The group, best known for its sausage rolls, steak and chicken bakes, vegan alternatives and sweet treats, opened the airside outlet at the end of May - 18 years after abandoning an attempt to sell baguettes to the Belgians.

Greggs has partnered with Lagardère Travel Retail at Tenerife South, a destination for millions of UK and international travellers each year, to test the strength of demand for its brand overseas.

The branch stocks Greggs' core menu and also features items tailored to the local market, such as Spanish omelette breakfast rolls and blueberry muffins.

"It is only one shop, so far though it's hit every sales hurdle," Greggs CEO Roisin Currie told Reuters in an interview after the group reported first half results.

She noted that Greggs performs well at airports in the UK: "The trial for Tenerife was - could you do something similar in an international travel hub? So far it's been pleasing."

Currie said more overseas airport openings could follow.

"If it (Tenerife) is positive then it will be a sort of look to see where else could this go in the future," she said.

Greggs quit its loss-making, 10-shop business in Belgium in 2008 to focus on its operations in the UK, where it has grown to 2,773 stores and sees scope for up to 3,500.

(Reporting by James Davey; editing by Sarah Young)