Cornish Bakery has reported a rise in both revenue and profit in its latest financial results, according to accounts for the year ending May 2025 filed with Companies House.
The bakery chain recorded a 24% increase in sales to £36.4m, while EBITDA rose by 32% to £4.5m. Founder and chief executive Steve Grocutt said the results reflect continued growth across the business despite ongoing challenges in the UK hospitality sector.
Over the past six months, the company has opened six additional bakeries in what it described as key locations. Grocutt said the business also recorded its highest-ever weekly sales during the recent Christmas period. The company reported its highest levels of staff retention to date and received an ‘Outstanding’ rating in the most recent Great Place To Work survey.
Commenting on performance, Grocutt said: “Customers are enjoying our products and service with all categories in like-for-like growth and our Net Promoter Score (NPS) growing to 69. Coffee is our outstanding performer, with our recently announced move to Cornish B-Corp Origin already reaping rewards. Good news continues with our next profit surge being imminent with us opening the doors to eight more beautiful bakeries by April this year, and lots more in the planning. We’ll also be revealing the refurbishment of four bakeries in the next month.”
The company also announced plans for a new brand extension concept, known as RISE. Three upcoming locations will operate under the new format, which will include extended food and drink offerings during brunch and early evening trading periods. According to the company, these licensed bakeries will serve additional small plates alongside alcoholic beverages supplied by regional producers. The new sites will be larger than existing bakeries, with one location spanning three floors and incorporating rotating art exhibitions. Specific locations have not yet been disclosed.
Cornish Bakery was founded in Mevagissey and now operates sites across the UK. Grocutt said the business continues to focus on incorporating Cornish suppliers and creatives into new openings and refurbishments. The company estimates that its operations contribute more than £10m annually to the Cornish secondary economy through local sourcing and supplier relationships.
Grocutt also commented on wider conditions facing the hospitality sector, citing concerns over government policy and business rates. “We’ll have 79 bakeries open for business by Spring 2026 and we just keep on breaking new ground, whilst breaking our own records. However, it is far from easy. This Government needs to show proper leadership for the High Street and for hospitality at large. They need to stop lying to us and to provide stability.”
He added: “This rates situation is a complete disaster, and they will need to change it again. Hospitality is hospitality. The difference between a pub, restaurant, bakery or coffee shop is not what it used to be and continues to be blurred. Customers are used to having a coffee in a pub or a meal in a coffee shop, yet the Government just do not understand this. The nerves around the Autumn Budget need to stop. I currently see a year of two halves: in the first, post-Budget calm to get things done. And in the second half, holding back to see if we get taxed again. This ceaseless instability and uncertainty is killing off hospitality and just making everything more expensive for our customers. The current trajectory for our wider industry under this Government is simply unsustainable. It does not need to be this way.”
