Founder Steve Grocutt says the right partner could drive significant outlet growth for the 66-store premium bakery-café chain as it seeks to ‘double or triple in size’ over the next few years
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Cornish Bakery’s Norwich outlet (pictured) opened in November 2024 | Photo credit: Cornish Bakery
UK-based Cornish Bakery has appointed advisors to oversee a sale of the business.
The premium bakery-café chain said consumer-focused M&A advisory firm Tamweel Capital will facilitate a deal, which is expected to generate interest from private equity firms and strategic trade suitors. It has not been disclosed whether Cornish Bakery is pursuing a full or partial stake sale.
World Coffee Portal has approached Cornish Bakery and Tamweel for comment.
Founded in 1994 by Steve Grocutt, Cornish Bakery currently operates 66 UK stores, serving a premium food menu of pasties, pastries and brunch dishes alongside specialty coffee supplied by London-based Union Hand Roasted Coffee.
The chain, which has previously received funding from Virgin Money to open new outlets, appointed Matt Finch as its first Managing Director in May 2024 to lead its bid to ‘double or triple in size’ over the next few years.
“From our first bakery in Cornwall to our nationwide presence today, we’ve stayed true to our vision of bringing high-quality, handcrafted products to every corner of the UK. The brand is in a fantastic position for its next chapter, and I’m incredibly proud of what we’ve built. With the right partner, Cornish Bakery has the potential to go much further, and I’m excited for what’s next,” Grocutt said.
Cornish Bakery posted 9.7% like-for-like sales growth for the last six months of 2024, with total year-on-year total sales increasing 26%. The premium bakery-café chain forecasts full-year revenue for the 12 months ending 31 May 2025 will reach £37m ($48.1m) – representing 26% year-on-year growth if achieved.
Coffee shop M&A activity in the UK ramped up in the second half of 2024, with hospitality operators and investors seeking a greater slice of the booming £6.1bn UK branded coffee shop market.
Premium doughnut and coffee chain Crosstown, specialty coffee roaster and café group The Gentlemen Baristas and hospital coffee chain Peabody Coffee all obtained new owners last year, while US coffee giant Starbucks acquired its largest UK franchisee, 23.5 Degrees, in October 2024.
Gerry Ford-run The Nero Group also bolstered its UK coffee shop portfolio by acquiring Nottingham-based coffee roaster and café chain 200 Degrees Coffee and travel hub coffee chain FCB Coffee, while Bread Holdings reportedly appointed New York-based investment bank Goldman Sachs to auction a sale of Gail’s in November 2024.
London-based Tamweel advised on a £5.5m ($7.1m) private equity raise for sustainability-focused restaurant chain Farmer J in January 2025 and has also facilitated fundraises for hospitality group White Rabbit Projects, experiential leisure brand Swingers and fitness group Gymbox.