Cornish Bakery has appointed sector specialist advisory firm Tamweel Capital to oversee a potential sale of the business.
This is set to generate interest from private equity firms and strategic trade suitors, noted the independent bakery chain, which did not disclose an estimated sales price.
Cornish Bakery said it has seen sustained year-on-year growth, and was expecting revenue and site EBITDA for its current financial year to May 2025 to reach £37m and £8.3m, respectively, alongside an approximate 9% increase in like-for-like sales coming from increased spend and volume of transactions.
Earlier this year, the company posted annual turnover of £29.4m for the 52 weeks to 30 May 2024, which marked a 24% increase on sales the year prior. However, a 28% increase in administrative costs resulted in profit for the financial period dropping to £869k from £1.1m in FY23.
Cornish Bakery was founded in 1994 in Mevagissey, Cornwall, by Steve Grocutt, first expanding into ‘tourist hotspots’ before successfully moving into high streets, retail outlet centres, motorway services, and event spaces such as the NEC Birmingham. It currently operates a 66-strong shop estate spanning the length and breadth of England as well as two sites over the border in Scotland – 18 of these locations have been opened since 2022.
Under the leadership of Mat Finch, who was appointed managing director last summer, the brand has reported 26% revenue growth in the second half of 2024. During this period, it expanded into Nottingham, Taunton, Winchester, Chelmsford, Milton Keynes, and Cirencester, with a further eight new stores planned for the coming months. Cornish Bakery believes there is potential for hundreds of its bakeries across UK high streets and transport hubs.
The company recently commissioned a nationwide consumer survey which highlighted the perceived strength of the bakery coffee shop category across different areas including food quality, speed of service, value for money, staff friendliness, décor, and coffee quality.
Notably, 74% of respondents rated bakery coffee shops four out of five or above for food quality, compared with 42% for traditional coffee brands. Similar trends appeared in value for money, with bakery coffee shops scoring 51% versus 28% for traditional coffee brands, highlighting their appeal to consumers seeking a more affordable experience.
“Cornish Bakery has always been about more than just great coffee and delicious food – it’s about creating spaces where people feel at home and staff love to work,” commented founder and owner Grocutt. “From our first bakery in Cornwall to our nationwide presence today, we’ve stayed true to our vision of bringing high-quality, handcrafted products to every corner of the UK.
“The brand is in a fantastic position for its next chapter, and I’m incredibly proud of what we’ve built. With the right partner, Cornish Bakery has the potential to go much further, and I’m excited for what’s next,” he added.
The fast-growing bakery coffee shop segment is forecast to grow at circa 9% per year from 2025-2027, driven by increasing consumer demand for premium baked goods alongside top quality coffee. “Cornish Bakery has played a huge part in defining the high growth bakery coffee shop segment, offering customers a next-generation format that is capturing market share from traditional coffee brands,” said Tamweel founder Ali Aneizi.
“Over the past decade, bakeries have evolved from simply selling bread and pastries to becoming vibrant social hubs, much like coffee shops. This shift has positioned bakeries as the new coffee shops – creating versatile destinations that serve high-quality coffee alongside a premium food range.”
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