Upmarket bakery chain Gail's has announced plans to open 40 new outlets across the UK, following a 20% rise in annual sales to £278 million. The company, which currently operates 185 sites, opened 36 new bakeries in the last financial year and saw increased sales to supermarkets.
According to accounts filed at Companies House, pre-tax losses widened to £7.8 million, up from £7.4 million the previous year, due to rising staff and energy costs, as well as £51 million spent on store pre-opening expenses. Despite this, directors highlighted strong year-on-year growth driven by demand for high-quality, nutrient-dense food.
Retail sales grew nearly 23%, outpacing the wholesale division, which supplies Waitrose, Ocado and Amazon from bakeries in London, Manchester and Bath. Co-founder Tom Molnar, speaking at a Propel conference, said the business was "still early in our growth", noting that successful chains like Greggs operate from thousands of sites.
Gail's owners, led by private equity group Bain Capital, reportedly hired Goldman Sachs last year to find new investors, valuing the chain at up to £500 million. The bakery was founded by Yael Mejia in the early 1990s, with the first cafe opening in Hampstead in 2005.
The chain's rapid expansion has made it a political bellwether for the Liberal Democrats and sparked local protests, including a petition in Walthamstow and graffiti on a new Brighton branch.
