A business transformation programme of restructuring and investment has paid off for Wenzel’s the Bakers as it reports a significant upturn in profit for the past year.
The family-owned bakery, which has 100-plus shops across London and beyond, saw EBITDA rise from £0.3m in 2025 to £4m in 2026, according to the firm’s unaudited accounts for the year ended March 2026. In addition, gross profit margin increased from 63% to 67%.
Turnover for the year was ‘broadly stable’ dropping from £63.4m in 2025 to £62.2m in 2026. This is the second year in a row that sales had dropped, with a 7% decrease seen between 2024 and 2025. Years of profitability also came to an end in 2025 as the firm reported a post-tax loss of £1.8m.
Wenzel’s said the decrease in turnover was because it ‘deliberately prioritised profitable growth, operational efficiency and customer value over volume-driven sales’.
Chairman Peter Wenzel, who was awarded the Outstanding Contribution to the Baking Industry in 2025, said the results “demonstrate the benefits of the difficult decisions we have taken”.
“While turnover reduced slightly, our focus has been on improving the quality of earnings rather than simply chasing revenue. The improvement in gross margin and EBITDA reflects the tremendous effort of our teams across the business and the success of the operational improvements we have implemented,” he added.
These improvements, Wenzel’s noted, including strengthening its operational foundations, embracing technology, and evolving its customer proposition to meet changing consumer demands.
On the product side, Wenzel’s has expanded its offering to include lower-calorie products, salads and smaller portion options. It also rolled out a Pistachio & Hazelnut Crème Croisnut, Strawberry Cheesecake, and White Biscoff doughnuts and a trio of Danishes for customers seeking something on-trend and indulgent. This year it has expanded its range further with focaccia pizzas to tempt those seeking afternoon snacks and a refreshed pre-packed sandwich line-up for lunchtime.
When it comes to technology, the bakery launched a customer loyalty app, introduced click-and-collect services, and rolled out a new website.
The investments are part of a wider programme focused on making the business ‘more robust, scalable and resilient’. This included restructuring activity designed to improve long-term sustainability, including operational efficiencies, cost reduction initiatives and the rationalisation of underperforming locations. These actions, Wenzel’s said, have contributed to the creation of a leaner and more effective operating model capable of supporting future growth.
“We have fundamentally transformed many aspects of the business, from the products we offer and the technology we use, to the processes and systems that support our operations every day,” said Peter Wenzel. “We recognised that customer expectations are changing and we have worked hard to evolve with them. Whether through healthier options, exciting new product launches, greater digital convenience or improved service standards, our focus has been on creating a stronger and more relevant business for the future.
“We now have a more efficient, more resilient and more engaged organisation, and we enter the new financial year with confidence in our ability to continue delivering sustainable growth and profitability,” he added.
Looking ahead, Wenzel’s said it remains focused on ‘disciplined expansion, continued innovation and ongoing investment in its people, products and technology’.
No comments yet