An acclaimed bakery chain with a strong presence in the West Midlands is embarking on a significant national expansion, targeting 40 new locations across the UK. This ambitious growth plan comes directly after the business reported a substantial hike in annual sales.
Rising Sales Fuel Expansion Ambitions
Gail's, renowned for its high-quality artisan bread and pastries, has revealed its sales surged to £278 million in the financial year ending February 2025. This impressive performance continues a pattern of robust growth for the brand, which successfully opened 36 new sites in 2024 alone, bringing its total UK estate to 185 bakeries.
Despite the soaring revenue, the company's latest filings with Companies House show its pre-tax losses widened to £7.8 million, up from £7.4 million the previous year. Company directors attributed this to increased operational costs, including higher staff and energy charges, and significant investment in new branches. A substantial £51 million was spent on pre-opening costs for new sites as part of their strategic growth.
Strategic Growth "With Purpose"
A spokesperson for Gail's told the Propel trade journal that the firm is pleased with its strong year-on-year growth. They stated this success is "underpinned by the increasing demand for high-quality, nutrient dense food, and by the support of the communities we serve."
The spokesperson added: "We will continue to build on this momentum by growing with purpose and remaining committed to improving access to good food." This philosophy of measured expansion was echoed by co-founder Tom Molnar. Speaking at a recent Propel conference, Molnar reflected on the brand's 20-year journey, noting they had twice paused growth to ensure quality wasn't sacrificed for speed.
"We’re still early in our growth," Molnar said, comparing Gail's to established giants. "You take McDonald’s, Greggs or any other successful food business here in the UK – they operate from thousands of sites, and we’re still below 200." The chain is currently estimated to be worth as much as £500 million.
From London Cafe to National Presence
Founded by Yael (Gail) Mejia in the early 1990s, Gail's took its modern form in the early 2000s when Molnar and others joined to open the first bakery café in London. The brand has since spread across the country, including two sites in the Birmingham area: one on Birmingham New Street and another in Solihull. The planned 40 new stores signal the next major phase in the bakery's conquest of the British high street.
