Cornish Bakery sees “more opportunities, than obstacles” in its mission to redefine the modern bakery whilst rapidly growing its estate.
“Part of that strategy is to build a bigger business, that doesn’t feel like it’s a bigger business,” founder Steve Grocutt tells MCA.
“It does what an independent does, thinks as an independent would, and indeed is independent.
“We not only build each bakery differently to fit in with the local community, but we expect each and one of the bakery teams to be involved in the local community.
This is part of a wider vision to “redefine what a bakery is, does and can be.”
Grocutt says that the 60-strong bakery business has largely seen “more of the same” in recent months, after reporting financial results for the year ended 1 June 2023, with net turnover of £23.7m compared to £20.9m the prior year.
This year so far, it has achieved a 7% increase in like-for-likes sales.
“January and February have still been good, but it has been slower”, he says, citing a number of shop closures due to coastal flooding, earlier in the year.
“I think the main news for Cornish Bakery is that we keep going. We’re conscious of the surroundings around us, but we’re not concerned.
“Bakery as the new coffee shop is really under serviced across the whole of the UK. So we see more opportunity than obstacles.
“I think it’s a new genre”, says Grocutt, “So it’s just going from strength to strength.”
Addressing concerns about market dynamics such as inflation and interest rates, he adds that a debt-light balance sheet and cash reserves puts the brand in a good position for growth, “Thankfully, we’re not massively exposed.”
Cornish Bakery has 10 new openings in the pipeline for 2024, largely in high-street locations, with plans to open just under one new location per month.
With longer term ambitions to “double or triple in size”, Grocutt emphasises the importance of team alignment, adding, “I’m not chasing expansion, it is not a God-given.
“We will only do this with the permission of our teams. If they’re happy, let’s go.”
Cornish Bakery currently operates six sites with franchise partner Roadchef Motorway Services but is currently “not pushing” for any additional franchise partnerships. “But we’re never closed for business,” Grocutt maintains.
The founder notes that the high street is “reinventing itself” and is now “more interesting” than it was pre-pandemic.
He also acknowledges the heightened competition for prime locations, but feels that there is “still more availability, than before the pandemic.”
Keen not to leave any of its trading bakeries behind, the business has a large refurbishment programme underway.
“It’s an excellent opportunity to really reconsider each location.”
For example, a recent revamp of a site in St. Ives, has turned its first-floor space into an art gallery that can be used free of charge by local artists, with the opportunity for out of hours events.
“That for me, is what I call ‘winning beautifully’”, says Grocutt.
“Where you’re not only got a successful business within the community, but also, you’ve got a business which is part of the community. We think that’s special.”
