Two Magpies in talks for new investment

Two Magpies Bakery is exploring its funding options with the aim of opening up to 10 sites per year, owner Steve Magnall tells MCA.

The 10-strong artisan bakery chain is in talks to raise a “small but significant” investment to kickstart its next stage of growth, which will see it expand within and outside its homeland of East Anglia.

“Without investment, we can open three or four sites per year,” Magnall says. “With investment, we can do 10.

“We’re looking at Suffolk, Norfolk, and also Essex and Cambridgeshire. That will easily give us 50 sites.”

The ambition is still to reach the 50-site mark, with a new 11,000 sq ft production unit to increase capacity – with the ability to support 20 stores.

Two Magpies also opened the first site under ‘mini Magpie’ concept in the market town of Beccles earlier this year to focus on takeaway sales.

The concept is targeted toward time-poor customers, offering items such as bread and pastries but without a chef on-site.

“It has all the elements of a Two Magpies but without the cooked breakfast and lunch,” Magnall says. “It has a low-cost fit-out as opposed to a site with a kitchen, so has higher returns in profitability terms.”

While the size of the Beccles unit lent itself to a takeaway-centred concept, the business will also look to open larger format sites with expanded café and deli spaces where possible.

It will expand café space at its Darsham location after moving pastry production to the new 11,000 sq ft unit.

“We have a shopping list of about 20 locations we’re looking at,” Magnall adds. “The customer is coming in for the experience. They like the fact that we do a hot lunch.

“So the ratio can be two minis for every big bakery, but depending on the location and the audience, we could also do three large bakeries in a year.”

The focus is also on digitising the business to drive repeat visits and engagement, while utilising data from the coffee loyalty programme.

“We’ve made significant investments in getting our structures right in terms of people, management, and systems.”