Gail’s Bakery, a premium bakery chain in the UK, is planning to expand with 40 additional outlets after experiencing a 20% increase in sales over the past year. The company opened 36 new bakeries and observed growth in sales to supermarkets. Currently operating 185 locations, Gail’s reported sales of £278 million for the year ending February, but its pre-tax losses increased to £7.8 million, compared to £7.4 million the prior year, due to rising costs and significant expenses related to new openings.
Directors indicated that rising staff and energy costs have affected profit margins, with £51 million spent on reopening stores. The retail segment of the business saw nearly a 23% rise in sales, which outpaced the wholesale division supplying retailers like Waitrose, Ocado, and Amazon from locations in London, Manchester, and Bath.
Tom Molnar, co-founder of Gail’s, remarked that despite having an extensive number of bakeries, the growth journey has been deliberate and cautious, indicating a commitment to maintaining quality over rapid expansion. He underscored that the company is still relatively early in its growth trajectory when compared to larger competitors like McDonald’s and Greggs.
Gail’s leadership, backed by Bain Capital, reportedly engaged Goldman Sachs last year to attract new investors to facilitate further expansion. The bakery chain was estimated to be valued at approximately £500 million.
Founded in the early 1990s by Yael (Gail) Mejia, Gail’s opened its first bakery café in Hampstead in 2005 following a partnership with Molnar. The chain’s expansion has not been without controversy, including local protests against new locations and some negative public responses in areas like Walthamstow and Brighton.
Source: https://www.theguardian.com/business/2025/nov/30/bakery-chain-gails-plans-to-open-40-more-outlets-as-sales-soar