Greggs: Drop in High Street Footfall Affects Sales; Modest VolumeGrowth Can No Longer Offset Cost Inflation from NI Rise and New Employment Regulations. EA to go private: AI and centralizing technology across studios canhelp cut costs, as financing and development costs have been rising steadily.Cloud migration allows capacity to scale up or down as needed, improvingefficiency. Legacy releases provide stability, but the company still needsnew, exciting titles. Proposed UK Tax Rises in Gambling: More Damaging if Applied to GamingRather Than Sports Betting; Operators Reluctant to Pass Costs to Customers;White Paper Still Looms Over the Sector. Tesco: Continued investment in the Finest line captures shiftingdemand; core price investment and Clubcard personalisation support sales.

After interviewing a number of executives in the UK food-to-go sector, Alex Smith, VP, Global Lead at Third Bridge made a series of remarks regarding Greggs, informed by insights from industry experts: Greggs has recently issued a profit warning that reflects more than just the effects of unseasonably warm weather. Our experts say the bigger concern is the drop in footfall across high street locations, a structural shift that is weighing heavily on traditional outlets which once depended on commuter traffic and office workers.

Our experts estimate the broader quick service restaurant and full-service dining sector will face a demand contraction of around 2 to 3 percent in the second half of 2025. The cost of living crisis continues to squeeze disposable income, with lower-income households feeling the brunt of the impact. Even so, Greggs is forecast to deliver modest volume growth of up to 2 percent, outperforming the wider market thanks to its strong value proposition.

One of the tougher realities for the company is that it can no longer rely on volume gains alone to absorb cost inflation. National insurance increases and new employment regulations are pushing up operating expenses, and management may have to lean on tiered price increases across popular categories to protect margins. Our experts say this strategy may work in the short term, but it carries risks if price sensitivity among its core customers intensifies in the months ahead.

In the video game space, Dylan Koehler, Analyst at Third Bridge made a series of remarks regarding EA to go private: As Electronic Arts edges closer to privatisation, the deal will be partially financed by EA taking on $20 billion in debt, so investors will be keen to see how AI can help the company cut costs. Across the industry, development costs have been rising steadily, and EA is no exception. Its R&D expenses are up 8% year-on-year in FY25, with an even steeper 12% jump in the first quarter of FY26, as competition drives demand for higher-quality content.

Our experts say the most significant lever for cost control is AI, which can automate much of the expensive content creation and even boost coding productivity. The potential is to replace large chunks of people-heavy workflows with AI-driven processes, cutting costs without necessarily sacrificing quality.

Cloud migration is another key theme. Traditionally, EA has relied on its own servers, which creates inefficiencies because usage spikes during a big game launch but drops off rapidly. Our experts point out that by shifting more development and live services into the cloud, EA can scale capacity up or down as needed, paying only for what it uses.

There is also the view that EA could unlock further efficiencies by centralising technology and decision-making across its many studios. At present, teams often approach problems independently, which can duplicate effort and inflate costs. One expert suggested that more shared solutions, particularly in cloud infrastructure and AI deployment, could meaningfully reduce these overlaps.

On the revenue side, legacy releases like FC and Madden provide stability but little growth on their own. The real upside, our experts say, will come from catalysts such as the launch of Battlefield 6 and the World Cup next year, both of which should boost sales. Still, for long term growth, EA needs a breakthrough title with the scale of Apex Legends, something unique and revolutionary that can capture a global audience rather than incremental updates to existing franchises.

In the gambling space, Alex Smith, VP, Global Lead at Third Bridge made a series of remarks regarding how proposed UK tax rises could affect gambling companies:

Gambling stocks took a hit after the Chancellor hinted at potential tax rises in the upcoming budget. Our experts say the market is bracing for two main scenarios: either aligning the current 15% sports betting duty with the 21% gaming tax or raising the gaming tax further to 25%. Both options would weigh heavily on operators, but the latter is seen as the more damaging outcome. Flutter Entertainment and its peers are already deep into scenario planning, testing mitigation strategies to cushion any shock from November’s announcement.

The concern for investors is that the most significant revenue growth in the UK in recent years has come from gaming, not sports. Sportsbooks have struggled to generate fresh momentum, while gaming has delivered steady, predictable margins. A heavier tax burden on gaming would therefore hit UK operators harder than a sports increase, given its growing reliance on digital casino and slots revenue. Our experts stress that they are very reluctant to pass the cost directly on to customers through higher margins or reduced payouts, as this risks losing market share.

Operators have also responded tactically on the commercial side. Marketing and pricing have become less aggressive, with examples such as rolling back generous offers like “best odds guaranteed.” Flutter in particular has scaled back heavily, while Bet365 has limited its offering to specific times. To mitigate tax pressure, companies are recouping losses by adjusting pricing, allowing margins to creep higher over time. Changing customer behaviour has supported this shift, with more players moving toward higher-margin products, partly guided by industry strategy and partly by natural demand.

Industry watchers also point out that the white paper on gambling regulation still hangs over the sector. While UK operators have been proactive in implementing changes ahead of regulation, the uncertainty continues to add pressure to them.

UK supermarkets: Orwa Mohamad, Analyst at Third Bridge comments on Tesco:
Our experts say food inflation is set to remain a major pressure point for the UK grocery sector. Shoppers are adjusting by making smaller, more frequent trips, and that shift is expected to keep footfall at large-format stores under pressure.

Value-seeking remains at the heart of consumer behaviour. It is no longer just the preserve of cash-strapped families but also of wealthier customers who are increasingly comfortable with premium private-label ranges. Tesco’s continued investment in its Finest line is a good example of how the grocer captures this demand. It also supports higher margins compared with entry-level ranges.

At the same time, Tesco’s strategy on core price investment and its heavy focus on Clubcard personalisation is strengthening loyalty. Our experts say personalised pricing makes shoppers feel recognised, which in turn reinforces repeat purchasing.

Another important pillar is Tesco’s marketplace model. By expanding its online offer without holding stock in warehouses, the retailer has rapidly scaled its assortment while earning commissions. This provides a new revenue stream that diversifies away from traditional grocery sales.

Yet discounters remain the biggest competitive threat. Experts believe this promotional pressure will only intensify during peak trading periods.