Investment-led expansion is still in the works at Wenzel’s The Bakers despite the high street chain falling into the red in its latest financial year.
A recent Companies House filing for the year ended 31 March 2025 revealed a 7% decrease in sales, down to £63.4m from £68.3m in the prior period.
Compounded by a £1.4m jump in administrative costs in FY25, Wenzel’s saw its years of profitability come to an end with a post-tax loss of £1.8m – this followed a previous £2.1m in annual profit.
The family-run business, which operates more than 100 stores across London and the southeast, had been issued a winding-up petition by HMRC on 19 March 2025 relating to owed taxes, but had this withdrawn days later after making “significant progress towards settling the liability”, according to its FY24 statement.
Directors at Wenzel’s stated they considered the company to have “performed satisfactorily” during its latest financial year and that its financial position at the year-end “remains sound with a positive EBIDTA”.
They noted the bakery chain is exposed to changes in consumer spending patterns, general economic conditions, cost inflation, and levels of footfall across the UK high street. Wenzel’s would continue to mitigate these risks through disciplined pricing, a focus on product quality and value, and by maintaining a strong and recognisable brand, added the directors. Online delivery platforms would also remain an established supplementary revenue stream.
In addition, dependence on the availability and cost of raw materials, reliable logistics, and the recruitment and retention of skilled employees would be mitigated through long-standing supplier relationships, diversified sourcing where possible, and ongoing investment in recruitment, training, and staff engagement.
Wenzel’s also revealed it had continued its strategy of controlled expansion in FY25, supported by ongoing investment in its central bakery in Northwood near Watford, as well as logistics capability and head office infrastructure.
“Based on our principle of delivering quality products, at affordable prices with outstanding customer service, we have seen increasing demand for our products in recent years,” said the company. “We plan to meet this demand by opening additional shops and the directors anticipate a further increase in both turnover and operating profit.”
Part of the expansion strategy is a first-ever franchise deal struck with Southern Co-op last August, with more openings planned for the future.
Wenzel’s was founded in 1975 by Peter Wenzel, who remains a key part of the leadership team and currently serves as the chairman. He was honoured with the Outstanding Contribution to the Baking Industry award at last year’s Baking Industry Awards.
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