Popular artisan bakery chain Gail's has unveiled ambitious plans to significantly expand its footprint across the United Kingdom, with a target of opening 40 new outlets. This major growth initiative follows a period of robust performance for the London-headquartered firm, which created nearly 500 new roles in its last financial year.
Financial Growth Fuels Expansion Plans
The announcement of 40 new sites comes on the heels of a successful year for the chain. According to recently filed accounts at Companies House, Gail's saw its revenue surge from £231.7 million to £278 million in the 12 months leading up to February 28, 2025. This growth was driven by strength in both its retail and wholesale divisions.
Retail earnings climbed impressively from £179 million to £219.8 million, while wholesale revenue increased from £83.7 million to £96.3 million. This performance builds on the company's previous expansion, having opened 36 new sites in the financial year ending February 2025, which brought its total workforce to over 4,000 people.
Despite the rising revenues, the company's pre-tax loss widened slightly from £7.4 million to £7.8 million over the same period, indicating continued investment in its growth strategy.
Strategic Investment and Future Vision
The company has confirmed that all 40 new locations are scheduled to be operational by February 28, 2026, with similar expansion expected to continue thereafter. A spokesperson for Gail's attributed the strong performance to increasing consumer demand for high-quality, nutrient-dense food and the support of local communities.
"We are pleased to have delivered strong year-on-year growth," the spokesperson stated. "We will continue to build on this momentum by growing with purpose and remaining committed to improving access to good food."
This expansion is supported by significant investment in infrastructure. The group has been enhancing its production capabilities, moving more lines into its new central bakeries in Milton Keynes to support the growing network of stores.
Ownership and Market Valuation
Gail's is led by chairman Luke Johnson, chief executive and co-founder Tom Molnar, alongside restaurant investor Henry McGovern and director Bradley Palmer. The chain is owned by private equity firm Bain Capital.
The business has been the subject of sales speculation for some time. It was reportedly valued at around £200 million in March 2024, a figure that had escalated to approximately £500 million by December of last year. Last month, reports indicated that Bain Capital had resumed its search for new investors in the bakery chain, with investment bank Goldman Sachs retained to explore strategic options.
In a board-approved statement, the company highlighted its successful trading year, noting healthy growth in established locations alongside the new openings. The statement also emphasised the ongoing expansion of its wholesale segment, which supplies major UK supermarket businesses and operates from bakeries in London, Manchester, and Bath.
