UK-based premium bakery-café chain Cornish Bakery is exploring a sale to support its next phase of growth.
The company has engaged consumer-focused mergers and acquisitions (M&A) advisor Tamweel Capital to oversee the sale process, which is anticipated to attract private equity firms and strategic trade buyers.
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The details of the sale, whether full or partial, have not been disclosed.
World Coffee Portal has contacted Cornish Bakery and Tamweel for comment.
Founded in 1994 by Steve Grocutt, Cornish Bakery operates 66 stores across the UK, offering a high-end menu that includes pasties, pastries, brunch dishes and speciality coffee from Union Hand Roasted Coffee.
The chain has experienced significant growth, with Matt Finch as its first managing director since May 2024, and aims to double or triple in size in the later half of the 2020s.
Steve Grocutt stated: “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.”
The bakery reported 9.7% like-for-like sales growth in the last six months of 2024, with a 26% increase in year-on-year total sales.
Cornish Bakery forecasts a full-year revenue of £37m ($48.1m) for the 12 months ending 31 May 2025, which would represent 26% year-on-year growth.
The UK coffee shop sector has seen a surge in M&A activity, especially in the second half of 2024.
Operators and investors are keen to capitalise on the £6.1bn UK branded coffee shop market.
Notable transactions include the acquisition of Crosstown, The Gentlemen Baristas and Peabody Coffee, as well as Starbucks’ purchase of its largest UK franchisee, 23.5 Degrees, in October 2024.
The Nero Group, under the leadership of Gerry Ford, has expanded its UK coffee shop portfolio by acquiring 200 Degrees Coffee and FCB Coffee.
Bread Holdings engaged Goldman Sachs for the potential sale of Gail’s in November 2024.
