Deep North - Owner Phil King (right) shakes hands with UMi specialist adviser Phil Sly inside the new Ouseburn bakery site

Source: Deep North

Owner Phil King (right) shakes hands with UMi specialist adviser Phil Sly inside the new Ouseburn bakery site

Independent doughnut and coffee chain Deep North has moved into a new production site in the Ouseburn district of Newcastle.

The 1,500 sq ft building located under an arch of Byker Bridge is will help double production for the firm as it looks to expand its footprint across the Northeast. It previously operated a 600 sq ft bakery in Wallsend.

A new on-site shop has also been created in Ouseburn, joining Deep North’s two other retail outlets at Front Street in Tynemouth and Sheepfolds Stables in Sunderland. It is currently planning to open four or five more stores over the next 18 months, all supplied by the new production bakery.

The modern, purpose-built facility – which includes a dedicated office space – is said to have transformed the working environment of the 29-strong workforce, improving productivity and employee wellbeing. New hires are also expected to support growth. 

Owner Phil King, who co-founded Deep North with Tom Clark in 2022, said he was thrilled to mark another significant milestone for the business. He said of the new site: “It is central to ensuring we can achieve our goal of continuing to open more stores across the region as we continue to expand over the coming months and years.”

King noted how the new shop is adjoined to the kitchen, allowing customers to sit and have a coffee as they watch the team make the doughnuts. “We wanted to create an experiential environment which would open the doors on how we do things,” he added.

Deep North produces a range of doughnuts from scratch including signature varieties such as the Homer (pink iced ring), Brown Butter & Smoked Sea Salt, Cinnamon Sugar Ring, and Seasonal Jam. While wholesale has not been a major focus to date, supplying some local coffee and bakery shops, it is looking to grow this channel and also expand into corporate catering. It is targeting 55% sales growth in 2026.

Plans to diversify its Ouseburn offer are also underway, including hosting the likes of doughnut decorating and barista masterclasses. “We set up Deep North to bring something new to the Northeast and the launch of a dedicated events programme is another example of how we’re continuing to do just that,” said King.

The company was provided a £40,000 grant towards the expansion move from UMi through its Business Growth Fund, which it managed on behalf of Gateshead Metropolitan Borough Council, North East Combined Authority, and Sunderland City Council.

“Deep North is a fantastic example of how the right finance and support can help ambitious businesses realise their goals and scale sustainably,” expressed Phil Sly, specialist adviser at UMi. “The new facility will provide Deep North with the space and infrastructure it needs to grow its workforce, increase output and expand its presence across the region, and we’re delighted to have been able to support Phil and the team on this remarkable journey.”