Gails Bakery Delivers Strong Sales Growth and Plans Major Expansion

Gail’s, the upmarket bakery chain, is preparing for a significant expansion after reporting robust sales growth for the last financial year. Sales increased by a fifth, reaching £278 million, driven by the opening of 36 new outlets and increased supply to major supermarkets. The company, which now operates 185 sites, is planning to launch a further 40 bakeries in the coming year.

Despite this impressive revenue growth, pre-tax losses widened to £7.8 million, compared to £7.4 million the year before. Rising staff and energy costs, alongside significant spending of £51 million on pre-opening expenses for new stores, weighed on profit margins. Retail sales rose by nearly 23 percent, outpacing wholesale revenue growth, which serves high-profile clients such as Waitrose, Ocado and Amazon from locations in London, Manchester and Bath.

Directors at Gail’s pointed to continued strong demand for high-quality, nutrient-dense food as the main driver of growth. They highlighted the company’s ongoing commitment to expanding access to premium food and maintaining close relationships with local communities. A spokesperson noted that the group would aim to sustain this momentum by growing purposefully and remaining focused on improving food accessibility.

At a recent Propel conference, co-founder Tom Molnar remarked that the chain, though growing rapidly, remains in the early stages of its expansion. Building a portfolio of nearly 200 bakeries took two decades, he said, and there were periods when the business halted growth to prioritise quality. Molnar cited larger competitors in the sector, such as Gregg’s and McDonald’s, which operate from thousands of sites, underscoring Gail’s ambitions for further expansion.

The bakery is currently owned by a group led by Bain Capital, which last year enlisted Goldman Sachs to attract new investment and accelerate growth. Market reports valued the chain at as much as £500 million. The company’s origins trace back to the early 1990s under founder Yael Mejia, with the first café opening in Hampstead in 2005, paving the way for its transition into a prominent retail and wholesale brand.

Gail’s growing presence has occasionally generated local resistance. In Walthamstow, east London, hundreds of residents signed a petition opposing a new branch, and a recently opened Brighton outlet was targeted by protest graffiti. Nevertheless, the brand continues to gain traction both as a retail operator and as a wholesaler to major supermarket partners.