Sales have jumped by almost a quarter and EBITDA by almost a third at Cornish Bakery in its latest financial year.
The fast-growing independent high street chain reported a 24% increase in revenue to £36.4m for accounts ending May 2025, with EBITDA up by 32% to £4.5m.
At the same time, owner and CEO Steve Grocutt hit out at the government for a lack of “proper leadership” that has created instability in the hospitality sector.
Cornish Bakery continues to expand its estate towards a target of over 400 UK sites. In the last six months, it has opened six new bakeries to reach a total of 73 with plans to open six more by the end of spring. Locations are to be revealed shortly.
Three of these new sites will showcase a brand-new concept dubbed ‘RISE’, which features an evolved product and service experience including additional small plates for brunch and early evening dining, washed down with Cornish beers from Harbour Brewery and wines from Camel Valley Vineyard. The business noted that the new bakeries will be significantly larger than others in its estate with 3,500 sq ft in one, 196 covers in another, and three floors including ever-changing curated art exhibitions in another.
Meanwhile, refurbishment of four of its stores in West Bay, Lyme Regis, Ambleside, and Bourton is to be completed within the next month.
Having delivered a record-breaking summer, the company continued to break sales records during the festive period with a best-ever week amassing 31% higher takings than the previous year. The figures included new openings, but it grew revenue at existing shops too – like-for-like sales rose by 17% over the Christmas and New Year period.
“Customers are enjoying our products and service with all categories in like-for-like growth and our Net Promoter Score (NPS) growing to 69,” commented Grocutt. He highlighted that coffee was an outstanding performer for the chain, with a recently announced move to Cornish-based supplier Origin Coffee already reaping rewards.
Stability needed
Grocutt also reflected on the current unease in hospitality, urging the government to show “proper leadership for the high street” and to “stop lying to us and to provide stability”.
“This rates situation is a complete disaster, and they will need to change it again,” he said, referring to last week’s announcement of a £100m-a-year support package for pubs.
“Hospitality is hospitality. The difference between a pub, restaurant, bakery or coffee shop is not what it used to be and continues to be blurred. Customers are used to having a coffee in a pub or a meal in a coffee shop, yet the Government just do not understand this.”
Grocutt said he currently sees a financial year of two halves. “In the first, post-Budget calm to get things done. And in the second half, holding back to see if we get taxed again. This ceaseless instability and uncertainty is killing off hospitality and just making everything more expensive for our customers.”
“The current trajectory for our wider industry under this Government is simply unsustainable. It does not need to be this way,” expressed the founder.
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